• Pakistan is likely to remain on the grey list of the Financial Action Task Force (FATF) for failing to comply with the global terrorist financing watchdog’s deadline to prosecute and penalise terrorist financing in the country.

What is FATF?

• FATF is the Financial Action Task Force, an inter-governmental body established in Paris in 1989 by the Group of 7 (G7).
• It seeks to combat money laundering, terrorist financing  and other threats to the international financial system.
• It is both a policy-making and enforcement body.
• FATF has 2 types of lists:
  • Black List:Countries knowns as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
  • Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.