FATF Asia Pacific Group places Pakistan on (Enhanced) Blacklist – Everything you need to know

FATF Asia Pacific Group places Pakistan on (Enhanced) Blacklist – Everything you need to know

Financial Action Task Force (FATF) Group places Pakistan on its Blacklist (Enhanced Expedited Follow Up List) for its failure in meeting the required global standards; and combating terrorism and money laundering. Pakistan was put in the Enhanced Blacklist of Asia Pacific Group (APG) because of the following reasons – Pakistan was non-compliant in 32 of the 40 Compliance Parameters on Money Laundering & Terror Financing, and it ranked low in 10 of the 11 Effectiveness Parameters.

Pakistan now has to focus on avoiding its entry into the Financial Action Task Force (FATF) Black List in October 2019. FATF will hold a Plenary meeting in Paris October 2019 to decide on Pakistan’s Grey list status. FATF added Pakistan on its Grey List in June 2018. The decision to put Pakistan on the blacklist was taken during the 41 member APG Plenary meeting that lasted for over 7 hours on two days in Canberra, Australia.

Which countries are put in Blacklist of FATF?- Countries that support terror funding and money laundering activities are placed in the Blacklist of FATF. These countries are known as Non-Cooperative Countries or Territories (NCCTs).

Pakistan in Grey List of FATF

The Financial Action Task Force (FATF) in June 2018 added Pakistan to its ‘Grey List’ for being involved in providing terror funding and related issues. It was not the first time that Pakistan was added to FATF’s Grey List. Pakistan had earlier been in the grey list of FATF during 2012 – 2015.

Asia-Pacific Group on Money Laundering (APG)

– FATF Asia-Pacific Group is one of the regional affiliates of the Financial Action Task Force.

– The Asia-Pacific Group on Money Laundering works to ensure that all the countries adopt and implement the anti-money laundering and counter-terrorist financing standards that are set out in the FATF’s 40 Recommendations and Eight Special Recommendations.

– APG assists countries in implementing laws to deal with crime, assistance, punishment, investigations; provides guidance in setting proper reporting systems and helps in establishing financial intelligence units.

– At present, there are 41 members of APG. Of these, 11 countries are also the members of the head FATF – India, China, Australia, Canada, Hong Kong, Japan, Korea, Malaysia, New Zealand Singapore and the United States.

About the Financial Action Task Force (FATF)

• The Financial Action Task Force (FATF) was is established in 1989 during the G7 Summit in Paris (France) as an inter-governmental body by the Ministers of its Member jurisdictions.

• FATF is an international anti-money laundering regulator that establishes international standards for combating money laundering and terrorism.

• FATF Secretariat is headquartered in Paris as ‘Organisation for Economic Co-operation and Development (OECD)’.

• FATF’s decisions are taken by the ‘FATF Plenary’, the decision-making body that holds FATF plenary sessions in February, June and October every year.

• FATF Plenary consists of around 39 member countries including India.

• China is the current President of the FATF.

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