22-Apr-2022: Finance Minister Smt. Nirmala Sitharaman attends FATF Ministerial Meeting in Washington D.C.
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman attended the FATF Ministerial Meeting in Washington D.C. on 21st April 2022, conducted along-side the 2022 Spring Meetings of the World Bank Group and the International Monetary Fund (IMF).
This meeting focussed on Ministers’ providing strategic direction, by endorsing the FATF’s strategic priorities for the years 2022-24 and reinforcing Ministers’ commitment to ensure suitable funding for the delivery of the strategic priorities which are Strengthening the FATF Global Network, FATF systems of Mutual Evaluations, Enhancing International Beneficial Ownership Transparency, Increasing Capabilities to more effectively recover Criminal assets, Leveraging Digital Transformation, Ensuring Sustainable Funding for FATF Strategic priorities.
During the Meeting, the Finance Minister reaffirmed India’s commitment to fighting Money Laundering, Terrorist Financing and Proliferation Financing and acknowledged and appreciated FATF on their work on Beneficial Ownership Transparency, Asset Recovery, and the role of FATF Global network in safeguarding the global financial system.
Smt. Sitharaman extended support to the strategic priorities and said that India is committed to provide the necessary resources and support to FATF in its endeavour as a global alliance against money laundering, terrorist financing and financing of proliferation of weapons of mass destruction.
24-Dec-2019: FATF’s another 150 questions for Pakistan
Financial Action Task Force (FATF) has asked Pakistan more questions on the action it has taken against madrassas run by proscribed outfits.
The FATF has kept Pakistan on the Grey List until February 2020. In October, it had warned that Pakistan would be put on the Black List if it did not comply with the remaining 22 points in a list of 27 questions.
Pakistan is required to show effective implementation of targeted financial sanctions against all UN designated terrorists like Lashkar-e-Taiba founder Hafiz Saeed, Jaish-e-Muhammad founder Masood Azhar, and those acting for or on their behalf.
Pakistan has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks, after an assessment of its financial system and law enforcement mechanisms. FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
In June 2018, Pakistan gave a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime, and to address its strategic counter-terrorism financing-related deficiencies. Pakistan and the FATF then agreed on the monitoring of 27 indicators under a 10-point action plan, with specific deadlines.
The understanding was that the successful implementation of the action plan, and its physical verification by the APG, would lead the FATF to move Pakistan out of the Grey List. However, Islamabad managed to satisfy the global watchdog over just five of them.
After an extension of the deadline for compliance, on December 6, Pakistan submitted a report to the FATF containing answers to the remaining 22 questions. In response, the FATF’s Joint Group has now sent 150 questions to Pakistan, asking for clarifications, updates, and actions taken against the madrassas.
As of now, Pakistan must respond by January 8, 2020. And at the next FATF meeting in Beijing, Pakistan will have an opportunity to defend the points in the report. Pakistan will likely ask for another relaxation of the deadline, probably up to June 2020, pleading that the February deadline is too tight for it to ensure compliance with the remaining 22 action plans. If Pakistan is actually moved out of the Grey List, it will be placed on the Black List with Iran and North Korea.
15-Oct-2019: Pak on verge of strong action by FATF; likely to be put in 'Dark Grey' list
Pakistan is on the verge of strong action by the international terror financing watchdog FATF and the country may be put in the 'Dark Grey' list. Officials attending the ongoing plenary of the Financial Action Task Force (FATF) in Paris said, as per indications, Pakistan will be isolated by all members for not doing enough. Pakistan given its inadequate performance and has managed to pass in only 6 of the 27 items. The FATF will finalise its decision on Pakistan.
According to FATF rules, there is one essential stage between 'Grey' and 'Black' lists, referred to as 'Dark Grey'. Dark Grey means issuance of a strong warning, so that the country concerned gets one last chance to improve.
The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. Pakistan was placed on the Grey List by the Paris-based watchdog in June last year and was given a plan of action to complete it by October 2019, or face the risk of being placed on the black list with Iran and North Korea. If Pakistan continues with the 'grey list' or put in 'Dark Grey' list, it will be very difficult for the country to get financial aid from International Monetary Fund, the World Bank and the European Union, making its financial condition more precarious.
23-Jun-2019: Saudi Arabia becomes first Arab country to be granted full FATF membership
Saudi Arabia has become the first Arab country to be granted full membership of the Financial Action Task Force (FATF) following the group’s Annual General Meeting in Orlando, Florida. The Kingdom’s accession comes as the FATF celebrates its 30th anniversary of its first meeting held in Paris in 1989.
Saudi Arabia had been a founding member of the MENA arm of the group since November 2004, and its full membership comes after it was reported the Kingdom had made “tangible progress” and for its efforts in implementing the FATF’s guidelines.
The group is responsible for issuing international standards, policies and best practices to combat money laundering, terrorist financing and proliferation.
Saudi Arabia received an invitation from FATF at the beginning of 2015 to join as an “observer member” as the group hailed the Kingdom’s position at international and regional levels, as well as its efforts in combating money laundering, financing of terrorism and proliferation of arms.
With the Kingdom becoming a FATF member, the number of permanent members in the group is now 39, including the most influential countries in the world, such as the permanent members of the Security Council and most G-20 countries.
11-Jun-2019: Pak likely to stay on FATF grey list
The Financial Action Task Force (FATF) has given an all clear to Pakistan on only two of 27 action plans it was supposed to complete to get out of the grey list. A country is put on the grey list when it fails to curb terrorism financing and money laundering. In April, it had asked Pakistan to reassess the operation of banned terrorist outfits in the country.
Pakistan is likely to stay in the grey list for now. It was put on the list in June 2018. The coming FATF Plenary and Working Group meetings in Orlando, Florida, scheduled for June 16-21, would be crucial for Pakistan to get out of the grey list or falling into the black list and having serious economic repercussions. The country was given 15 months to clear out the terror camps or it may get blacklisted.
The review on the implementation of the FATF Action Plan held in February did not go well, which has increased pressure on Pakistan. The FATF currently comprises 36 members with voting powers and two regional organisations, representing most of the major financial centres in all parts of the globe. The FATF plenary placed Pakistan in the grey list after the country could not secure a minimum of three votes.
On May 3, Finance Minister Arun Jaitley said India will ask the FATF to put Pakistan on a blacklist of countries that fail to meet international standards in stopping financial crime.
In the past few weeks, Pakistan has shut down at least 13 key terror camps across the LoC. Terror training camps of the Lashkar-e-Taiba, Jaish-e-Mohammed and Hizbul Mujahideen in Pakistan Occupied Kashmir (PoK) have been shut down.
Pakistan has been on FATF’s grey list for terror financing since last June but this is not the first time the country is under watch. It was grey-listed from 2008 to 2010 and then from 2012 to 2015.
29-Jun-2018: Financial Action Task Force puts Pakistan on grey list
In a yet another blow to Pakistan at the global stage, the Financial Action Task Force has placed it on the grey list for failing to curb anti-terror financing. This was despite Islamabad submitting a 26-point action plan and launching a concerted diplomatic effort to avert the decision. The decision was taken at the global financial watchdog Financial Action Task Force's plenary session in Paris.
The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The placement on the grey list could hurt Pakistan's economy as well as its international standing. Meanwhile, US has made it clear that it cannot turn blind eye to the protectors of terrorism. Visiting US Ambassador to UN Nikki Haley said that Trump Administration has send a strong message to Pakistan to act against terrorists operating from its soil.
22-Feb-2018: Pakistan remains on FATF grey list
Pakistan will remain on the Financial Action Task Force's grey list and its position on the list will be reviewed again later this year in June. The Financial Action Task Force is a global terror financing watchdog that had placed Pakistan on its 'grey list' and was asked to take steps to curb money laundering and terror financing.
India wanted Pakistan to be placed on the 'black list', a move that would negatively impact the Pakistan economy. The decision to keep Pakistan on the FATF grey list was taking during a plenary session of the watchdog in Paris.
The plenary session came days after 40 jawans of the Central Reserve Police Force were killed in a suicide bombing carried out by the Jaish-e-Mohammad in Jammu and Kashmir. Following the Pulwama terror attack, India stepped up its diplomatic game to isolate Pakistan internationally.
At the plenary session of the Financial Action Task Force, Pakistan was warned to stick to deadlines with respect to taking steps curbing terror financing. Pakistan's position and whether it should be placed on the blacklist is a matter that will be considered by the FATF again in June this year.
25-Jan-2017: RBI stops investments to ‘non-cooperative countries’
Reserve Bank has prohibited Indian entities from making direct investments in any entity located in ‘non co-operative countries and territories’, as identified by the inter-governmental body FATF.
The prohibition on investment is “in order to align” instructions under FEMA with the objectives of the FATF. At present, there is no restriction on an Indian entity with regard to the countries where it can undertake Overseas Direct Investment.
The principal objective of the Non-Cooperative Countries and Territories (NCCT) Initiative was to reduce the vulnerability of the financial system to money laundering by ensuring that all financial centres adopt and implement measures for the prevention, detection and punishment of money laundering according to internationally recognised standards.