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Turkey, Jordan & Mali on FATF Grey List

Current Affairs

The Financial Action Task Force (FATF) has added Turkey, Jordan and Mali, in its revised list of “jurisdictions under increased monitoring”, aka the FATF grey list. 

  • There are now 23 countries in the list. Pakistan has been retained on the Grey List.
  • The FATF took two countries — Botswana and Mauritius — out of the grey list. These countries had made significant progress in addressing the strategic AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) deficiencies identified earlier by the FATF and included in their respective action plans.

 FINANCIAL ACTION TASK FORCE

  • FATF is an inter-governmental body established in 1989 during the G7 Summit in Paris.
  • Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
  • The objectives of the FATF are 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.

FATF LISTS

If countries fail to prevent international money laundering and terrorist financing, then they shall be placed on the list.

  1. Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
  2. 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.
  3. Dark Grey List: According to FATF rules there is one essential stage between ‘Grey’ and ‘Black’ lists, referred to as ‘Dark Grey’. ‘Dark Grey’ means 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 upto 3rd Phase. Now it’s just called warning — that is the 4th phase.

Source: https://indianexpress.com/article/explained/financial-action-task-force-turkey-7584633/lite/

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