The Financial Action Task Force (FATF), based in Paris, the capital of France, has removed the United Arab Emirates (UAE) from the gray list. This is being considered a big relief for UAE.
Those countries are included in the gray list, which do not take all steps to fight money laundering and terror financing. After the FATF meeting in Paris, many countries including UAE have been decided to be removed from the gray list. FATF has praised the UAE for improving its policies to combat money laundering and terror financing.
Which countries were expelled by FATF?
The FATF said in a statement after the meetings on Friday that Barbados, Gibraltar and Uganda would also be removed from the ‘grey’ list. The statement said that these countries will no longer come under the increased monitoring process of FATF. In the countries included in the FATF list, investors shy away from investing and lenders shy away from giving loans, which affects imports, production etc. Also, global banks also avoid doing business in these countries.
What is FATF?
Financial Action Task Force is also called Financial Action Task Force. It is an inter-governmental body which was established in 1989 by the G7 group of countries in Paris, the capital of France. Its job is to keep an eye on money laundering, proliferation of weapons of mass destruction and terror financing at the international level. FATF also promotes effective implementation of legal, regulatory and operational measures on finance related issues. The FATF’s decision-making body is called the FATF Plenary. Its meeting is held three times a year.
