FATF

FATF is Financial Action Task Force. It is an inter-governmental organization. It was established in 1989 at the G7 summit held in Paris.

About FATF

The FATF was established to set standards and operations to combat terrorist financing and money laundering. It is a policy making body. It monitors the activities of its member countries in implementing countermeasures against terror financing and money laundering.

FATF Plenary

The FATF Plenary is the decision-making body of FATF. It meets three times annually.

FATF Grey list

The countries that are safe for terror funding and money laundering are put under FATF Grey list. This list changes now and then based on the counter measures taken by the countries. As of October 2021, there are 22 countries under the list. They are Philippines, Cayman Islands, Barbados, Cambodia, Zimbabwe, Albania, Morocco, Syria, South Sudan, Yemen, etc. In June 2021, the FATF decided to put Pakistan under grey list after the Government of Pakistan implemented 26 of the 27 anti-terror points forwarded by FATF. Before that Pakistan was put under black list.

FATF Blacklist

The countries that are non-cooperative to control terrorism in their own regions are put under FATF black list. Also, these countries are non-cooperative in fighting against international terrorism. The FATF black list countries as of 2020 are Albania, Burkina Faso, Barbados, Cambodia, Cayman Islands, Jordan, Jamaica, Malta, Haiti, Mali, Myanmar, Nicaragua, etc.

EAG

EAG is Eurasian Group on Combating Money Laundering and Financing of Terrorism. It operates under the aegis of FATF. The regional body is made of India, China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Turkmenistan, Tajikistan, Belarus and Uzbekistan.

What if a country is put under greylisting?

The country’s access to international loans is restricted. The country should act immediately to identify strategic deficiencies and resolve swiftly.

What if a country is put under blacklisting?

The country is subjected to economic sanction. Also, it is subjected to prohibitive measures by the FATF and also by the other international organizations.

India and FATF

In 2020, India agreed to share more evidence on narco terror cases linked to Pakistan. These Pakistan based syndicates are funding the terrorists operating in Jammu and Kashmir.