Pakistan in FATF grey list

TNPSC Current Affairs - June 2018 by TNPSC Guru 

The Financial Action Task Force (FATF) had formally placed Pakistan on the grey list for failing to curb anti-money laundering and terrorism financing regime.

About FATF

• FATF is an inter-governmental body to combat money laundering and terrorist financing.
• It was established in G-7 summit in 1989, headquartered in Paris, France..
• It has 37 member including India, European Union and the Gulf Co-operation Council 

About Grey list

• Including in Grey list which means the country which not taken enough step to counter money laundering and terrorist financing.
• It will decrease the foreign investment in the country considering the ties to terrorist activities , also the image of country.
• Also very difficult to get the loan from International monetary fund, world bank and other foreign financial institution.