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Turkey added to FATF’s ‘gray list’, Pakistan to remain there

Prime News, International (Paris), Oct 22:- Financial Action Task Force (FATF), an international organization that monitors and sets guidelines to protect against money laundering and terrorism financing added Turkey, Jordan and Mali to its watch list Thursday.

The Paris-based Financial Action Task Force’s “gray list” calls for increased scrutiny of financial dealings in the three countries, which have agreed to work on the group’s recommendations. Being put on the list can scare away investors and creditors, hurting exports, output and consumption. It also can make global banks wary of doing business with a country.

The FATF also announced a new strategy for combatting corruption through shell companies or other anonymous entities. The group said the proposed rules would force countries to set up a registry listing who actually owns a company that must be verified and updated within a month.

“The proposals will close loopholes and regulatory weaknesses that for too long have allowed fake companies to be used as a cover for criminal activity or to hide wealth from tax authorities,” FATF President Marcus Pleyer said.

The proposed rules follow the recent release of the “Pandora Papers” by the International Consortium of Investigative Journalists. That report shed light on the financial dealings of the elite and corrupt and how they have used offshore accounts and tax havens to shield trillions of dollars in assets.

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