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What are disadvantages of being included in gray list of FATF?

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What are disadvantages of being included in gray list of FATF?

Disadvantages

  • It hampers the economy of a country in a negative manner where other countries start looking at the greylisted country as a risky nation for investment.
  • Grey listed countries also suffer a blow to its tourism industry as people generally prefer to avoid such a nation.

What happens when a country is Greylisted by FATF?

The FATF revises the blacklist regularly, adding or deleting entries. b. Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.

Is Pakistan out of FATF GREY list?

Pakistan was retained on the FATF ‘grey list’ for failing to effectively implement the global FATF standards and over its lack of progress on investigation and prosecution of senior leaders and commanders of UN-designated terror groups.

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Why Pakistan is still in FATF GREY list?

Why is Pakistan on FATF’s ‘grey list’?

In June 2018 Pakistan was placed on a watch list of countries—the so-called grey list—by the Financial Action Task Force (FATF) for persistently inadequate controls to deter terrorist financing and money-laundering.

Is Pakistan doing enough to comply with FATF guidelines?

Although Pakistan has made rules and regulation to comply with FATF guidelines on piece-meal basis, but as in all the cases its implementation record has not been satisfactory. Some of the actions were taken at the last moment before going to the Paris meeting of the FATF.

What does FATF’s latest statement say about Pakistan’s AML/CFT regime?

It seems FATF’s concerns are mainly regarding financing of terrorism. The FATF’s public statement issued on 29 June, 2018 begins by saying, “In June 2018, Pakistan made a high-level political commitment” to “strengthen its AML/CFT regime and to address its strategic counter-terrorist financing-related deficiencies [emphasis added].”

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Is Pakistan’s placement on the grey list a negative thing?

FATF uses peer pressure through the age-old technique of name-and-shame. There are many factors at play and it remains unclear how negative Pakistan’s placement on the grey list will eventually turn out to be. There is, however, no debate that it is indeed a negative. Here are some of the ways in which grey listing could affect Pakistan.

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