Pakistan may soon be on FATF's 'dark grey' list, here's what it means

In what may be called a clarion call for Pakistan, the Financial Action Task Force (FATF) that met on Monday in Paris has hinted that the country may be put in the ''Dark Grey'' list. The officials attending the ongoing plenary informed news agency PTI, that international terror financing watchdog FATF will take strong action, after Pakistan's non-compliance with the pointers given by the body to combat terror. They also told that the country has been given the last warning to improve. Officials attending the ongoing plenary of the Financial Action Task Force (FATF) said as per indications, Pakistan will be isolated by all members for not doing enough. Pakistan reportedly managed to pass in only six of 27 items, an official privy to the development said.

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What is ''Dark Grey'' list of FATF and what it means for Pakistan 

According to FATF rules, there is one essential stage between ''Grey'' and ''Black'' lists, referred to as ''Dark Grey''.  ''Dark Grey'' means the issuance of a strong warning, so that the country concerned gets one last chance to improve, another official said. ''Dark Grey'' was the term used for warning up to the 3rd Phase. Now it's just called warning -- that is the 4th phase. The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. If Pakistan continues with the ''Grey List'' or puts in the ''Dark Grey'' list, it would be very difficult for the country to get financial aid from the IMF, the World Bank, and the European Union, making its financial condition more precarious.

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NSA's statement on FATF warning to Pakistan

Exposing Pakistan's open funding of terrorism, National Security Adviser (NSA) Ajit Doval, on Monday, said that the biggest pressure faced by Pakistan is by the FATF while addressing at National Investigation Agency (NIA)'s national conference of Chiefs of Anti-Terrorism Squad/Special Task Force in Delhi. He directed the chiefs to collect proper evidence against Pakistan to put up in international forums. He said that only they could access and understand the evidence. He also emphasized the need for putting up evidence which will stand the scrutiny of law.

"The biggest pressure faced by Pakistan is by FATF for funding terror. If you (ATS members) could collect proper evidence which can be put up in international forums, against Pakistan... Everyone knows that Pakistan is supporting and funding terrorism. But in these forums, it is the evidence that is required. Only you have access to it and understand it. Only you can find evidence which can the scrutiny of law," he said.

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Pakistan of FATF list 

The FATF placed Pakistan on Grey List in June 2018. In August 2019, the Asia Pacific Joint Group (APJG) placed Pakistan in the enhanced follow up list for failure to meet the standards. The list was based on technical compliance and rated 'satisfactory' on meeting 10 points out of the 40. Depending on FATF's decision, Pakistan may or may not join the blacklist with Iran and North Korea. Meanwhile, the US has urged Pakistan to prevent militant groups from operating on its soil and prosecute top Lashkar-e-Taiba (LeT) operatives along with its leader Hafiz Saeed.

(with PTI inputs)

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