Pakistan is not the member of FATF but to its loss has now become part of FATF's grey list
Many of us do not know that there exists an inter-governmental body with a motto to combat money laundering and terrorist financing. This body being called as FATF (Financial Action Task Force) works by reviewing the money laundering and terrorist financing, promoting the adoption and implementation of legal, regulatory and operational measures globally for combating money laundering and terrorist financing. It identifies national level vulnerabilities and protect the international financial system form misuse. After its establishment in 1989 many countries became its member. Currently there are 37 members of FATF including UK, USA, India, Turkey and so on. However, Pakistan does not hold its membership. But now owing to Pakistan being regarded as the one with weak jurisdiction, it has been put up on the FATF's grey list.
Grey list embodies those countries that according to FATF's review has jurisdictions with weak measures to combat money laundering and terrorist financing.This is not the first time Pakistan is accompanying other countries in this list, it was there in 2008 and from 2012 to 2015.
Here the question arises that how does FATF reviews Pakistan's or any other country's measures for combating money laundering and terrorist financing? well, for this purpose FATF has developed a series of recommendations. These recommendations are paired with a complimentary approach to do all the assessment. All in all FATF's assessment techniques involves two components:
So, apparently on the basis of such assessment Pakistan has been called on again to "do more".
Being the citizen of Pakistan I have witnessed the loss that the terrorist have caused to it and how this terrorism has spoiled our country's global image. After being labelled as part of FATF's grey list the situation has gotten even worse for Pakistan. It would effect our country's economy , import , export, foreign investments and most importantly our already jeopardized global image. It also increases the risk for Pakistan to be chucked into the black list (currently being embodied by Iran and North Korea).
Till now situation is critical for Pakistan, let see what change do the coming elections bring. whether Pakistan will be able to gain brighter future? Will it be possible for Pakistan to rebuild a positive image at the international platform? Can Pakistan find an escape from the grey list?
Grey list embodies those countries that according to FATF's review has jurisdictions with weak measures to combat money laundering and terrorist financing.This is not the first time Pakistan is accompanying other countries in this list, it was there in 2008 and from 2012 to 2015.
Here the question arises that how does FATF reviews Pakistan's or any other country's measures for combating money laundering and terrorist financing? well, for this purpose FATF has developed a series of recommendations. These recommendations are paired with a complimentary approach to do all the assessment. All in all FATF's assessment techniques involves two components:
- The technical compliance assessment : It addresses the specific requirements of FATF's recommendation. Reviews legal and institutional framework of the country, powers and procedures of competent authorities.
- The effectiveness assessment: It identifies the extent to which the legal and institutional framework of the country is producing the desired results for combating money laundering and terrorist financing.
So, apparently on the basis of such assessment Pakistan has been called on again to "do more".
Being the citizen of Pakistan I have witnessed the loss that the terrorist have caused to it and how this terrorism has spoiled our country's global image. After being labelled as part of FATF's grey list the situation has gotten even worse for Pakistan. It would effect our country's economy , import , export, foreign investments and most importantly our already jeopardized global image. It also increases the risk for Pakistan to be chucked into the black list (currently being embodied by Iran and North Korea).
Till now situation is critical for Pakistan, let see what change do the coming elections bring. whether Pakistan will be able to gain brighter future? Will it be possible for Pakistan to rebuild a positive image at the international platform? Can Pakistan find an escape from the grey list?
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