PARIS: An international money-laundering watchdog has added Pakistan, Indonesia, Ghana, Tanzania and Thailand on Thursday to its blacklist of nations that fail to meet international standards.
The Financial Action Task Force (FATF) has found that the five countries were flaunting recommendations made to them toward fighting money-laundering and financing terrorism, its executive secretary, Rick McDonell, told journalists.
No countries were taken off the blacklist, but Honduras and Paraguay were removed from an intermediary "grey-list" of countries found to be falling behind on international standards despite having committed to them.
"We are looking exclusively at the implementation of the standards," McDonell told journalists at a FATF meeting in Paris. "Countries that we look at wind up on the list because they have not implemented them."
The body can make recommendations to any of the 36 countries that have signed a membership charter, as well as other nations, but it has no power to carry out sanctions.
The FATF, whose recommendations reach more than 180 countries through regional networks, estimates that money laundering and related financial crimes cost between two per cent and five per cent of global gross domestic product.
In its report, the FATF also called on governments to consider tax evasion as a money-laundering offence. The agency is also extending its focus to target the non-proliferation of weapons of mass destruction.
The FATF blacklist now includes 17 countries. Aside from the five new ones, they are: Bolivia, Cuba, Ethiopia, Iran, Kenya, Myanmar, Nigeria, North Korea, Sao Tome and Principe, Sri Lanka, Syria and Turkey.
The grey-list includes 22 countries: Algeria, Angola, Antigua and Barbuda, Argentina, Bangladesh, Brunei, Cambodia, Ecuador, Kyrgyzstan, Mongolia, Morocco, Namibia, Nicaragua, the Philippines, Sudan, Tajikistan, Trinidad and Tobago, Turkmenistan, Venezuela, Vietnam, Yemen and Zimbabwe.
COMMENTS (10)
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This is very serious. Pakistan was warned in October 2011 to shape up and they were put on watch. But nothing was done.
I hope SECP proposed Immunity from probe of source or legitimacy on investments made is Stock Exchange is not allowed. International sanctions will be imposed on Pakistan and poor people will suffer.
@sashayub: Sir, I was just trying to be funny. Sorry if it did not work.
@Aryan: Dravidian and Pakistanis? I hope that was a joke. If the theory holds that Caucasian people migrated to India in search of new pastures then Pakistanis have a right to claim Aryan ancestry. And @Fahim. I like your bigotry and hatred.
@Aryan: lame comments, nothing to do with the article or its substance
Switzerland is also known to be a country for money-laundering. Real estate business is camouflaged for money-laundering. There are still crocks among bankers and financial advisors who want to make a quick buck out of dirty money.
@Balma: Please read last sentence of @fahim's comment. And by the way, it is Dravidian and Pakistanis. It was sarcasm as every thing is Amreeeki/Hindu baniya/Yahoodi sazeesh for some people.
Aryan or Dravadian or who ever, Do Pakstsanis comment on every thing in India as ISI's fault?
India probably has stronger financial system! Even Bangladesh is rated above Pakistan now.
rightly shows whats our position in the world order... a failed state, with broken economy, 90% population hungry, unhealthy, uneducated, dirt poor on streets, corrupt, angry and extreme... without industry, power, gas, water, oil, the only thing we were good at probably was this. And we got caught... now the search starts which neighbor we will put the blame on.
What, no India? Must be CIA/RAW/MOSSAD/MI5 conspiracy.