Grey list
The Financial Action Task Force (FATF) is commonly referred to as the world’s “terrorism financing watchdog”. It maintains three lists black list grey list and white list
FATF maintains a “grey list” of countries that it watches closely. In essence, these are countries that have, in the assessment of the FATF, failed to prevent international money laundering and terrorist financing, and are, therefore, on a global watchlist for bad behaviour.
Until Friday (October 21), Pakistan was the most important country on the list. After it (along with Nicaragua) was taken off the list, 23 countries remain under watch.
Among these countries are the Philippines, Syria, Yemen, the United Arab Emirates, Uganda, Morocco, Jamaica, Cambodia, Burkina Faso, and South Sudan, and the tax havens of Barbados, Cayman Islands, and Panama.
Why it was in grey list
Pakistan, first entered the list in 2008, left it, and then was on it from 2012 to 2015. Since 2018, it has not left the list. It is because several time it was found guilty of terror financing and money laundering also it was not fulfilling the listed requirements by the FATF i.e. FATF had said Pakistan needed to “investigate and prosecute” senior leaders and commanders of UN-designated terror groups, including Jaish-e-Mohammed chief Masood Azhar, Lashkar-e-Taiba founder Hafiz Saeed, and its ‘operational commander’ Zakir Rehman Lakhvi.
CONSEQUENCES FOR INDIA:
Increase in terror attacks in India
This latest development would be opening the ways to provide the funds to the terror outfits in Pakistan. Because now Pakistan can easily get the loans from IMF and world bank and other financial institutions.
Geopolitical setback for India
Geopolitically it is like the setback for India as Pakistan now feel more comfortable at global level and india lost an all time area where it can be felt ashamed . also Pakistan now can be more vocal at global level about Kashmir issue.
Losses on our internal security
There can be several incidents in India in future that can unrest India internally and these incidents can be funded by Pak based firms.
