Name of blogger .nazir sindhu
Logo .. Think tank……. topic ..FATF.
In 1989 a summit of G.7 countries was held in Paris and thought over the emerging issue of money laundering and deep concerns were shown . Issue was discussed very seriously by members and agreed upon money laundering is threat posed to banking system, other financial institutes and it is blockage in the legal routs of capital and business activities. Worthy members G7 collectively decided in summit manage an organization to monitor money laundering activities , its methods and techniques using for these malpractices. For the purpose Organization was organized in the name of financial action task force(FATF) .In 1990 FATF presented 40 recommendations to fight back money laundering. Initially 16 members from world over join this org. But now it is expanded and presently 39 permanent members, observers, associate and globally all financial institutes are in list. In 1979 America launched a war to break up soviet union with co- operation of Afghanis, Pakistanis ,Arabs and petro Dollars . In 1989 war was ended but it gives birth to a baby called Terrorism. Terrorist started activities under the flag of Al qaida and other terrorist organizations and got access to America, demolish the world trade center with 4000 casualties. It frightened the world like earth quack. In 2001 FATF introduced 9special recommendations to measure and block financing routs in use of terrorist for their activities. To meet the purpose FATF recommended globally to draft new laws to strengthen legal system provide ability to investigators ,prosecutors and punish the terrorists their financers and facilitators .Briefly the purpose of org. is to fight against illegal money transportation ,block routs, ways which facilitate proliferation, terrorism and money laundering .Mainly the objective of FATF is make transparency in financial activities , invest power in competent authorities and expand international co-operation for the purpose . Dear readers take into consideration recommendation of FATF are not binding on any country but it is presumed, all will follow the recommendations for their interest and global co-operation otherwise non co- operative country have to face being added in grey or black list.
Dear readers I would like to explain the procedure being adopted by FATF. primarily organization focus on areas globally where money laundering , terrorist and illegal financial activities are in practice and provide help to investigators. Technology change the world and it gear up the speed of financial crimes, therefore FATF aught, to review and change its methodology timely . FATF recommended to financial institutions to comply with and give due diligence to customers their finance reports suspicious transactions and mention the countries do not comply with or avoid compliance deliberately . According to recommendation 2 lists were provided for the countries where illegal activities are assumed .No 1 grey and No 2 black . Dear readers I would like to elaborate for your kind attention. What is grey list and how does FATF implement it . Country under focus of FATF due to illegal activities in its jurisdiction but does not take proper actions to control ,will be added in grey list ,no one add any country in black list directly. There may be 2 reasons of failure .one incompetency and loopholes in laws second deliberately ignore the mater. FATF provide knowledge, techniques, ways to stop illegal financial activities to focused countries and assume to follow ,if the country in grey list follow the recommendation fully and satisfy the organization it require minimum 12 members satisfactory report then alleged country will be clear from grey list, if report is not satisfactory and alleged country require more time to follow the plan , it is mandatory minimum3 member countries would recommend for expansion. These are countries currently in grey list Pakistan,Albania, Bahamas, BarbadosBotswana, Cambodia, Ghana Iceland,Jamica ,Maurititus ,magnolia ,Myanmar Nicaragua. Panama ,Syria ,Uganda Yemen Zimbabwe.
In black list Only 2 countries are involved Iran and North korea
Pakistan is in grey list as narrated by FATf due to its inability to prevent money laundering and financing to terrorists. First Pakistan was added in grey list in 2008 after bombay terrorist attack. India alleged Pakistan and accuse non political org. lashkar a tayyba head by hafiz saeed .Pakistan replied to India please share intelligence we will co operate .In 2014 Pakistan was removed from grey list with note country had made significant progress .In 2018 Pakistan Re added and given some task to meet till February 2019.Due to unsatisfactory performance date was extended till June 2020 and further till October .In October summit will held ,Pakistan addressed 26 recommendations out of forty, 14 are yet to be addressed ,some days latter Pakistani Parliament passed bill against money laundering to introduce new laws to meet the requirement of FATF . Dear readers take into consideration if Pakistan meet all requirements even then will not be removed from grey list in October. It is necessary that the representative of organization observe ground realities and submit report, if report is positive then Pakistan will be removed from grey list in feb,2021.Pakistany prime minister said it is India negative planning to push back Pakistan in black list .India is lobbying with others Pakistan opponents countries from 2 years. Pakistan need satisfactory report from 12 countries to come out from grey list, currently it looks difficult to manage for Pakistan.
Dear readers money was escorted from Pakistan by ex rulers ,traders, smugglers to wards developed countries like uk,usa, Switzerland and others, money launders are living in those countries with their families why not FATF ask and put them in grey or black list .Hell of illegal amounts are escorted to India , criminals invest their money in film making real estate and others deficit business activities just to convert black money in to white. Dear readers Practice of money laundering was started from poor countries towards rich, no one bother. Initially disturbance was created by narcotic smugglers . west is the lucrative market of narcotic but suppliers do not trust on west banking industry and they brought back money from west to under develop economies where easy to convert black money into white. Secondly terrorist and their financers, escort money for terrorist activities towards target countries .Narcotic suppliers put dent in the develop economies and terrorist create fear of lives .In my opinion to manage the problem creators in develop economies, plate form of FATF was created by the mighty countries. it is weapon of rich to snub the poor.
Name of blogger .nazir sindhu