What does FATF blacklist mean for Pakistan?

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What does FATF blacklist mean for Pakistan?

Officially known as High-Risk Jurisdictions subject to a Call for Action, the FATF blacklist sets out the countries that are considered deficient in their anti-money laundering and counter-financing of terrorism regulatory regimes.

Will Pakistan be blacklisted by FATF?

Pakistan has escaped being blacklisted due to the support from China, Malaysia and Turkey. In the 39-member FATF, it requires the support of at least three countries to avoid being blacklisted for terror financing and money laundering. Pleyer said, “FATF is a technical body and we take our decisions by consensus.

How does FATF effect Pakistan?

Pakistan has been hit with massive losses to its GDP worth $38 billion because of the Financial Action Task Force’s (FATF) decision to retain the country on its grey list since 2008, according to a research paper published by the Islamabad-based independed think-tank, Tabadlab.

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What happens in FATF blacklist?

The FATF blacklist has been issued by the FATF since 2000, and lists countries which FATF judges to be non-cooperative in the global fight against money laundering and terrorist financing, calling them “Non-Cooperative Countries or Territories” (NCCTs). …

What happens when FATF blacklist?

FATF blacklists identify countries that are considered inadequate in money laundering and counter-financing of terrorism regimes. In the most serious cases, countries are called upon to take countermeasures to protect the international financial system from continuing. This is also called FATF AML deficient list.

Which countries are blacklisted by FATF?

As of 21 February 2020, only two countries were on the FATF blacklist: North Korea and Iran….FATF Blacklisting reports

  • Bahamas.
  • Cayman Islands.
  • Cook Islands.
  • Israel.
  • Lebanon.
  • United States of America.
  • Marshall Islands.
  • Nauru.

What are the implications of FATF?

The FATF has developed the FATF Recommendations, or FATF Standards, which ensure a co-ordinated global response to prevent organised crime, corruption and terrorism. They help authorities go after the money of criminals dealing in illegal drugs, human trafficking and other crimes.

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How does being blacklisted affect you?

Being blacklisted means that you have a negative credit profile. If you are on the blacklist, it means that you cannot get credit. You will therefore not be able to open a clothes or furniture account. A bank loan will also be impossible.

What happens when a country is blacklisted?

The negative effects of being blacklisted can be quite considerable, with huge inconvenience being the least of them. More severe effects include loss of credibility and goodwill, a decline in business and clients, and financial hardship.

Why Pakistan is in FATF list?

Why was Pakistan retained in the ‘grey list’? Pakistan was ‘grey listed’ in June 2018, after the FATF found multiple strategic anti-money laundering (AML)/combating the financing of terrorism (CFT) deficiencies on its part. It was asked to implement the action plan for achieving 10 objectives.

When was Pakistan blacklisted by FATF?

Pakistan was placed on the grey list by the FATF in June, 2018 and was given a plan of action to complete it by October, 2019. Since then the country continues to be in that list due to its failure to comply with the FATF mandates.

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How many countries are blacklisted by FATF?

A total of 14 countries were identified as jurisdictions that have strategic deficiencies that pose a risk to the international financial system.