India is now surrounding Pakistan from all sides! Be it the battlefield or the platform of diplomacy, Pakistan is facing defeat everywhere. This time, India has decided to break Pakistan in every way, so that it can never run a terrorism factory again. To weaken Pakistan economically, India has now demanded from the Financial Action Task Force (FATF) that Pakistan be put on the grey list again. India argues that Pakistan uses international aid to nurture terrorism. Pakistan was removed from the grey list in October 2022.
FATF is an intergovernmental body founded in 1989 and sets policies and standards for the security of the global financial system. The FATF list reflects the status of countries to combat money laundering, terrorism financing, and other financial crimes. FATF constantly monitors how criminals and terrorists raise, use, and transfer funds. FATF regularly publishes reports that raise awareness about the latest money laundering, terrorism financing, and proliferation financing techniques so that countries and the private sector can take the necessary steps to mitigate these risks. So, is FATF going to have a ‘crooked eye’ on Pakistan again?
What is FATF’s Grey List
FATF has two lists – the Black List and the Grey List. The Black List includes those countries that do not follow FATF’s rules to prevent money laundering and terrorism financing. Very strict international financial sanctions are imposed on the countries included in this list. At the same time, the Grey List includes those countries that have some shortcomings in preventing money laundering and terrorism financing, but they are cooperating with FATF to improve. These countries are given a time-bound action plan to improve their financial system.
Currently, FATF’s grey list includes Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Cote d’Ivoire, Croatia, Democratic Republic of Congo, Haiti, Kenya, Lao People’s Democratic Republic, Lebanon, Mali, Monaco, Mozambique, Namibia, Nepal, Nigeria, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen. Now, India wants Pakistan’s name to be added to this list.
If Pakistan goes to the grey list again, there will be big trouble
If India succeeds in getting Pakistan back on the grey list, international economic monitoring and sanctions may increase. This will affect foreign investment and capital flow for Pakistan. If Pakistan’s name is included in the grey list again, it will suffer a lot. This will further deepen the economic crisis in Pakistan, its reputation will fall internationally, and it will face difficulties in financial transactions. This can prove to be a huge setback for Pakistan, which is already struggling with economic distress. This step of India is part of the strategy to put all-round pressure on Pakistan.