Pakistan & FATF: A Journey from Grey List to White List

Abstract

Number of organizations have been established at international level to maintain peace and security of the world. FATF has been established to scrutinize and keep a check on money laundering and terror financing. The present study is focusing on, after being grey listed by FATF, what kind of constraints facing Pakistan internally and externally in coping the menace of terror financing and money laundering. The paper argues how both India and Pakistan are vying to materializing their objectives. According to Indian claims, Pakistan is still involved in cross border terrorist activities in India and for that reason Pakistan should be placed in black list. On the other side, Pakistan claims that she has made high level commitments to meet the standards of international organization. To translate these objectives into action number of state institutions are engaged to secure place in white list. The paper excavates that politicization of FATF is raising questions on the transparency and accountability of this organization. The paper finds that international lobbies in the form of US, India and Israel are working and have overwhelmed the organization, to even downgrade Pakistan into black list. It suggests that FATF needs to maintain equilibrium in the competing narratives of all the stakeholders.

      Keywords: FATF, grey list, money laundering, terror financing