China moves against Pakistan in FATF, Turkey now the only supporter

China has joined India and United States in putting Pakistan on Grey list of the FATF (Financial Action Task Force). Both China and Saudi Arabia have joined US, India and other European countries sending stern messages to Pakistan against its actions of terror funding money laundering

Highlights

A Plenary session of the FATF is to be held in June 2020. China, Saudi Arabia and Turkey were the three countries that supported Pakistan against FATF move in putting Pakistan under Grey List. Now Turkey and Malaysia are the only supporters. 12 out of 39 votes are required to move out of FATF list which Pakistan will not be able to.

Pakistan is currently on Grey List of FATF and with its major supporters withdrawing their backing, Pakistan will continue to remain on FATF Grey list. Pakistan was put on the list in June 2018. It was given a plan of action which the country was supposed to complete by October 2019. Failing of which will place it under black list.

FATF Grey List and Black List

The FATF is a Paris based organization that combats terrorism funding and money laundering.

Grey List

The countries that are not safe and are supporting money laundering and terror funding are included in the list.

Black List

The countries that is uncooperative tax havens for terror funding. They are also called Non-Cooperative Countries or Territories (NCCTs).

Countries currently in Black List and Grey List

The lists now have been renamed to “Call for Action” and “Monitored Jurisdiction”. The Call for Action countries or the Black List Countries include Iran and North Korea.

The Monitored Jurisdiction or Grey List include Iceland, Ghana, Botswana, Syria, Yemen, Pakistan, Mongolia and Cambodia.

The above lists are updates as of February 20, 2020.

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