Financial Action Task Force retains Pakistan in the grey list.

Why in news?

• The global money laundering and terrorist financing watchdog, Financial Action Task Force (FATF), retained Pakistan in the grey list and asked the country to work on money laundering investigations and prosecutions.
• The decision has been taken after the conclusion of the four-day FATF Plenary from March 1-4, 2022.The event took place in hybrid mode from Paris, France.
• FATF also added the United Arab Emirates (UAE) to its grey watchlist.
• Pakistan has been on the grey list of FATF since June 2018 for failing to check money laundering, and terror financing. It was given a plan of action to complete it by October 2019 but it fails to comply with the FATF mandates.
• Pakistan is now targeting the full completion of the 2021 action plan on anti-money laundering and combating terror financing by the end of January 2023.

About Financial Action Task Force (FATF):

• The Financial Action Task Force (FATF) is an inter-governmental organization established to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
• It was formed in 1989 by the G7 Summit which was held in Paris. The FATF is really a policy-making body that works with governments to bring about national legislation and regulatory reforms in these areas.
• Headquarters- Paris, France
• Members- 39 nations along with 9 FATF-Style Regional Bodies (FSRBs)