In this post, I will discuss What is FTAF and it’s GRAY List and Blacklist means. It is in the news being blacklisting of Pakistan by the Asia Pacific Group on Money Laundering & Terrorism Funding which is an affiliate and a Regional Group of FTAF.
You can also have look at the video made on this content, if not willing to read the whole post.
What is FTAF?
Financial Action Task Force on Money Laundering (FTAF) is an inter-governmental organization founded by G-7 Nations in 1989 in order to combat money laundering by uncooperative tax havens nations.
In 2001, a policy of terrorism funding also included after 09/11.
The headquarter of FTAF is in PARIS and Presently, there is 37 member nations & 2 regional cooperation (Europe Commission & Gulf Cooperation) part of it.
However, It does not have any role in law enforcement matters, investigations or prosecution.
What is GRAY list and Blacklist
FTAF issues two lists or OECD (Organisation for Economic Co-operation and Development) list: –
- GRAY List – It is like a warning sign to the nation being put in the Gray list for non-following the policies of FTAF or fail in combating money laundering & terror financing.
- Blacklist – Being put up in the blacklist means that the country has not following the policies of FTAF in combating money laundering & terror financing.
The FATF blacklist or OECD blacklist has been issued by the Financial Action Task Force since 2000. It puts the countries in the Blacklist and named as “Non-Cooperative Countries or Territories (NCCTs).”
Effects of listing nation in Blacklist
FTAF blacklist or OECD blacklist means the sanction of financial support to the country from the International Organization or by the member countries. It effects the financially to that country at the International level.
- International Boycott
- No loan from any International Institutions like IMF, World Bank, etc.
- Sanction of International Trade.
- Economic Sanctions from International Institutions like the IMF, World Bank, etc.