finical action task force (FATF)

 The FATF (finical action task force) is a global watchdog created at the G7 summit held in France in 1989. the function of FTAF is to combat money laundering and terrorist financing by implementing a series of legislative measures among 200 countries that are under FATF jurisdiction. FATF compromise of 39 members representing major finical hubs around the globe. FATF is headed by a president, recently Dr. Marcus Pleyer of Germany, and a vice president Elisa de Anda Madrazo of Mexico serving from 1 July 2020 to 30 June 2021. They are selected by the Plenary among its 39 members. The FATF has jurisdiction to implement sanctions on the countries lacking commitment in bringing legislative changes to combat money laundering and terror financing. Countries with a high rate of money laundering and terror financing and poor legislative structure to prevent them are put in increased surveillance list also called grey list, While those countries which show no commitments in bringing legislative changes to minimize money laundering and terrorist financing are pushed into the blacklist which is High-Risk Jurisdictions subject to a Call for Action. Being on the grey list decreases a country's chances of getting foreign aid, loan services, and foreign investments, whereas a country on the blacklist is finically isolated from the rest of the world. Currently, only Iran and South Korea are enlisted in the FATF blacklist whereas, 12 countries are enlisted in the FATF grey list as of 21 February 2020, including Albania, the Bahamas, Barbados, Botswana, Cambodia, Ghana, Iceland, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Pakistan, Panama, Syria, Uganda, Yemen, and Zimbabwe.

Pakistan was also enlisted in the grey list in June 2018 and was given a task for improvement at 27 points in the legislative system by the end of the year 2019. This date was extended further to September 2020 due to the Coronavirus pandemic (COVID-19). This was not the first time for Pakistan, it was also enlisted in the grey list in 2008 and from 2012 to 2015. According to the FATF report, Pakistan was able to implement 21 out of 27 action points. FATF has appreciated Pakistan's commitment to reforms against money laundering and terror financing and the extended deadline to February 2021, urging Pakistan to work on the remaining 6 task points. The decisions on enlisting a country into grey or blacklist are done by Plenary among its members. Decisions of the FATF members are also influenced by their relationship with the country. Likewise, the decision about Pakistan was also influenced by its relation with members of FATF such as India, Israel, Malaysia, china, turkey and Saudi Arabia, etc. Pakistan usually faces great opposition from India and Israel, while Malaysia, China, and turkey usually favor Pakistan. For Pakistan execution of the remaining 6 Task points is very important in preventing it from falling into the blacklist and also for getting out from the grey list. this will also have a positive impact on countries' economic situation