Financial Action Task Force (FATF): Grey List and Black List

• Integrity Education, Delhi
• 26, Jun 2021

Why in news: Pakistan has been included in the grey list of FATF.

• FATF is the global money laundering and terrorist financing watchdog
• The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
• FATF was established by the G-7 Summit that was held in Paris in 1989.

FATF Black List

• Officially known as High-Risk Jurisdictions subject to a Call for Action
• It is a list of countries that are considered as non-cooperative in the global effort to combat money laundering and the financing of terrorism
• In other words; countries that are supporting terror funding and money laundering activities are placed in the Blacklist
• The FATF blacklist or OECD blacklist has been issued by the Financial Action Task Force since 2000

Countries in Black List

• Iran
• North Korea (Democratic People's Republic of Korea)

FATF Grey List

• Officially referred to as Jurisdictions Under Increased Monitoring
• Countries on the FATF grey list represent a much higher risk of money laundering and terrorism financing but have formally committed to working with the FATF to develop action plans that will address their Anti Money Laundering /Combating the Financing of Terrorism deficiencies.

Countries in Grey List

• Albania, Barbados, Botswana
• Burkina Faso, Cambodia, Cayman Islands
• Ghana, Jamaica, Mauritius
• Morocco, Myanmar, Nicaragua
• Pakistan, Panama, Senegal
• Syria Uganda Yemen Zimbabwe