The three list categorisation of the Financial Action Task Force (FATF)—white, grey, and black—has been largely ineffective when dealing with jurisdictions like Pakistan. There need to be more gradations between the grey and blacklists as it may increase policy options and leverage.
Ashok Kumar Behuria replies: The Financial Action Task Force (FATF) is an inter-governmental body established in 1989. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures by different states for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
In a statement on February 28, 2008, the Financial Action Task Force (FATF) voiced concern about the existing deficiencies in Pakistan’s counter terrorist financing and anti-money laundering system. While acknowledging some progress, the FATF noted that the shortcomings in Pakistan’s national legal framework constituted a money laundering/terrorist financing vulnerability in the international financial system.
Pakistan Castigated for Deficiencies in Counter Terrorist Financing Regime
In a statement on February 28, 2008, the Financial Action Task Force (FATF) voiced concern about the existing deficiencies in Pakistan’s counter terrorist financing and anti-money laundering system. While acknowledging some progress, the FATF noted that the shortcomings in Pakistan’s national legal framework constituted a money laundering/terrorist financing vulnerability in the international financial system.