Money Laundering & its Prevention

Reading Time: 7 mins The recent cases of money laundering unearthed paint a sorry picture of India’s vulnerability in the financial sector. But more than that, Money laundering is a serious internal security threat. In this article, we will try to decode the problem of Money laundering.

Black Money in India – Sources, Effects & Measures Taken

Reading Time: 6 mins India has, for many years, faced the problem of black money. Despite the measures taken by the government to address this issue, results are few and far between. There still exist stacks of unaccounted money, creating a huge loss for the government. Thus, efficient, proactive government reform is a need of the hour to address this issue.

Financial Action Task Force (FATF), Pakistan & Terror Financing – All You Need to Know

Reading Time: 4 mins

The Financial Action Task Force (FATF), the global watchdog that combats money laundering and terrorist financing, had grey listed Pakistan in June 2018 for not cutting down the finances of terrorist groups within its soil. Greylisting puts Pakistan under international scrutiny to prove its compliance with FATF norms. Notably, the greylisting move was initiated by the US.

Even with greylisting measures, Pulwama terror attack happened in February 2019 = FATF (with India’s lobbying) threatens Pakistan that it will be moved to the blacklist due to its failure to comply with the action plan which was due May 2019. Blacklisting could virtually cut all financial flows to Pakistan.

This big-picture article explains the following in an analytical manner with a mindmap for quick revision.

  1. What is the Financial Action Task Force (FATF)?
  2. How FATF works?
  3. What is the grey list and blacklist?
  4. What is the issue with Pakistan?
  5. Why the US initiated the move?
  6. What are the implications of placing Pakistan on FATF watchlist?
  7. Has Pakistan changed with external Pressures?
  8. Why has Pakistan failed to comply with or curtail terror funding?
  9. What is the way forward?