What is FATF?
The FATF is a global watchdog that was founded to tackle money laundering initially but its role became prominent post the 9/11 terror attacks.
Following the attacks, the FATF expanded its operations and included terror financing under its purview. In 2003, the FATF came out with a new set of guidelines where it asked state to confiscate proceeds of illegal transactions and form a financial intelligence unit to receive and probe suspicious transaction reports. The progress of the recommendations are monitored through ‘peer reviews’ or ‘mutual evaluations’. During 1991 and 1992, the FATF expanded its membership from 16 to 28 members. In 2000, the FATF raised it to 31 members and has since increased it further to 39.
The FATF maintains two lists — a blacklist and a grey list. Countries on its blacklist are those that the watchdog deems non-cooperative in the global effort to curb money laundering and terror-financing. The grey list, on the other hand, officially referred to as ‘Jurisdictions Under Increased Monitoring,’ constitute those nations that present significant risks of money laundering and terror-financing but which have committed to working closely with the FATF in the development and implementation of action plans that address their deficiencies. FATF grey list constitutes countries that are considered as a safe haven for terror funding and money laundering. Though, inclusion in the list is not as severe as being black listed. It is a warning to the country to tackle the issues. If the country is not actively tackling money laundering or terror funding, it is then blacklisted. So far, only two countries have been blacklisted, they are Iran and North Korea.
WHAT PAKISTAN FM SAID
In a statement the foreign minister said evidence of Indian state sponsored terrorism unveiled by Islamabad last year once against vindicated after investigation concluded Lahore’s Johar Town blast was orchestrated by the intelligence agency, Research and Analaysis Wing (RAW).
DIPLOMATIC CAMPAIGN
The foreign minister said that he along with National Security Adviser Moeed Yusuf had held a presser some time back, in which they had shared their concerns with the world community.
The world was provided with evidences over Indian training of terrorists and supply of weapons, besides its terror financing, he added.
Qureshi said they had sent dossier of evidences to the United Nations, ambassadors of P-5 countries, diplomatic community and media.
EVALUATING MEMEBERS
The Indian government has been aware of the risks posed by money laundering from the past to the present. The government of India aim to protect its county from money laundering risk through laws and legal mechanisms. India enacted the Prevention of Money laundering Act in 2002.
The laws and regulations prior to this law were insufficient to combat money laundering. The Prevention of Money laundering Act has entered into force to combat money laundering and to prevent money laundering.
The PMLA seeks to combat money laundering in India and has three main objectives:
· To prevent and control money laundering.
· To confiscate and seize the property obtained from the laundering money; and
· To deal with any other issue connected with money laundering in India.
FINANCIAL INTELLIGENCE UNIT
India (FIU-IND) was set by the Government of India on 18th November 2004 as the central national agency responsible for receiving, process, analyzing and disseminating information relating to support financial transactions.
FIU-IND is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing the global efforts against money laundering and related crimes.
FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.