Recently we see in the newspaper “Pakistan is in ”Grey List" of Financial Action Task force (FATF).

Terrorist organisation such as Jammat- ud- dawa and Jaish-e-muhammed continue operate in Pakistan. So FATF continue Pakistan in “Grey List”

Pakistan has been on the FATF's grey list for deficiencies in its counter terror financing and anti-money laundering regimes since June 2018. Recently  the authorities had taken further steps including the prosecution of Lashkar-e-Taiba chief Hafiz Saeed and his associates in terror financing cases.25-Feb-2021. 

Financial Action Task Force (FATF) retained Pakistan on its "grey list" till June after concluding that Islamabad failed to address its strategically important deficiencies, to fully implement the 27 point action plan that had drawn up for Pakistan.

Now let's talk about FATF.

FATF is an intergovernmental organisation founded in 1989 on the initiative of the G 7 to develop policies to combat money laundering. its mandate was expanded to include terrorism financing in 2001. The FATF is the global money Laundering and terrorist financing watchdog.

The main objectives of FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system of the world. FATF is a "policy-making body" that works to generate the necessary political will to bring about national legislative and regulatory reforms in above areas.

It currently comprises 37 member countries including India.

FATF has listed two types of List.

1- Black List 

2- Grey List 

Let's talk about Black List.

Black List- It sets out the countries that are considered deficient in their anti money laundering and counter financing of terrorism regulation regimes.

These Black List countries are subjected to economic sanction and other prohibited measure by FATF member states and other international organisations. 

The current FATF black list include countries North Korea and Iran.

Grey List- Grey List classification is not as negative as the black list countries. But on the list still face economic sanction from institutions like International monetary fund (IMF) and world bank.

Money Laundering and illegal wildlife trade (IWT) Report FATF released the report.

Let's talk about IWT.

Illegal wildlife trade Report as  a “global threat” which has links with other organised crime like modern slavery, drug, trafking and arm trade.

Proceeds of IWT are around 23 billion per year globally suggested that money Laundering laws should applied to wildlife trade.