Pakistan to remain in FATF 'grey list' till February 2020
What's the story
After speculations over its black-listing, Pakistan will now remain in the "grey list" of the global terror funding watchdog Financial Action Task Force (FATF), until a new deadline of February 2020. However, the global watchdog said that the possibility of a formal blacklisting of the country by next year is now "highly probable." Here are more details.
Details
Pakistan addressed only 5 items from the 27-point Action Plan
The Paris-based FATF noted that there was a consensus on retaining Pakistan in the grey list, based on its poor performance in curbing terror financing and dealing with UN-designated terrorists flourishing on its soil. It was found that the country was able to address only five out of the 27 actionable items under the Action Plan devised by FATF, by October.
Meeting
China, Turkey and Malaysia supported Pakistan at the FATF meet
The meeting conducted to decide Islamabad's fate was attended by representatives from 205 countries, the International Monetary Fund (IMF), the United Nations (UN), and World Bank, among other organizations. Reportedly, China, Turkey and Malaysia came out in support of Pakistan at the said meeting. It should be noted that a country needs the support of at least three other nations to avoid getting black-listed.
Quote
If plan not followed, FATF to take action against Pakistan
On the fifth and last day of its meeting in Paris, FATF said that it "strongly urge(s) Pakistan to swiftly complete its full action plan by February 2020." "Otherwise should significant and sustainable progress not be made by next Plenary, the FATF will take action including urging members to advise their financial institutions to give special attention to business relations/transactions with Pakistan."
History
Pakistan was inducted in the grey list in June, 2018
To recall, Pakistan was put in the infamous grey list by the FATF in June, 2018, for taking insufficient measures against issues like terror funding and money laundering, thereby proving to be a safe haven for terrorists. Naturally, a further demotion into the 'dark grey' list or blacklist would have severe implications for Pakistan, which is already in the midst of an economic crisis.
Information
Currently, Iran and North Korea feature on FATF's blacklist
Founded in 1989 on a G7 initiative, the FATF is an intergovernmental body that looks to combat money laundering and terrorist financing at the international level. So far, only two countries- Iran and North Korea feature on its dreadful blacklist.