The FATF and Pakistan’s position on its ‘grey list’
Ahead of the plenary session of the Financial Action Task Force (FATF), the global financial crime watchdog, from June 14 to 17 in Berlin, Pakistan which continues to face an economic crunch, is hoping for some respite in the form of its removal from the FATF’s ‘grey list’ or the list of countries presenting a risk to the global financial system.
What is the FATF?
- International watchdog for financial crimes -The Financial Action Task Force is an international watchdog for financial crimes such as money laundering and terror financing.
- Address loopholes in the global financial system -It was established at the G7 Summit of 1989 in Paris to address loopholes in the global financial system after member countries raised concerns about growing money laundering activities.
- Sets standards or recommendations for countries -The FATF sets standards or recommendations for countries to achieve in order to plug the holes in their financial systems and make them less vulnerable to illegal financial activities.