Pakistan is out of FATF ‘grey list’ on terror funding

Context

Pakistan won a major reprieve, as the FATF, an international watchdog on terror financing and money laundering agreed to remove Pakistan’s name from the 'grey list'.

Financial Action Task Force (FATF):

It was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering.
In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
Since its inception, the FATF has operated under a fixed life span, requiring a specific decision by its Ministers to continue.
The current mandate of the FATF (2012-2020) was adopted at a Ministerial meeting in April 2012.
Its secretariat is housed administratively at the OECD.
FATF was not formed as a formal international Organisation. Rather, the FATF is a task force composed of member governments who agree to fund the FATF temporarily with specific goals and projects.

How many countries are there in the FATF?

The FATF, which reportedly comprises 36 countries and two regional organizations (European Commission and Gulf Cooperation Council), works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

What are the Black List and Grey List? Those are two types of lists that FATF maintains. A blacklist is given to the countries that FATF considers uncooperative tax havens. These countries are known as Non-Cooperative Countries or Territories (NCCTs). A Grey list is a warning given to the country that it might come on the Black list. But even when a country comes under a grey list it faces many problems like problems in getting loans Economic sanctions Reduction in trade.

Information and Broadcasting ministry’s orders for the State Governments

Polity & Governance Government Interventions and Policies

Regulations for Online Child Sexual Abuse in India

Polity & Governance Acts and Amendments

Take immediate action against hate speech: SC

Polity & Governance Government Interventions and Policies

Migration of Critically endangered Great Indian Bustards to Pakistan

Ecology and Environment Biodiversity

A crisis is brewing in the coffee industry

Economy