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FATF expanded as Financial Action task Force was established during the G7 summit that was conducted in Paris in the year 1989. The stakeholders in this organization include the heads of the G7 countries, the heads of eight other countries and the President of the European Commission. FATF Objectives The principal objective of FATF is to evolve the standards and norms pertaining to the regulatory measures to combat money laundering, terrorist financing and a range of other related threats that pose a risk tot eh health of the international financial system. FATF works with the nation states to encourage some legislative changes and reforms in the sectors discussed above. Also, FATF provides policy recommendations that comply with the international standards in the line of combating money laundering, proliferation of the weapons of mass destruction, and terrorism funding. Since 1990, FATF has revised its recommendations four times. FATF Member Nations The official website of FATF says the organization has 39 members. The members of the FATF represent major financial centers around the world. What is FATF Blacklist? FATF Blacklist refers to the FATF list of "Non-Cooperative Countries or Territories" (NCCTs). The OECD Blacklist has been published from the year 2000 and this list consists of the names of the countries that are non-cooperative with regard to the global measures to combat money laundering and terrorism financing. The FATF updates this blacklist regularly by adding or deleting the entries made. The case of Pakistan and FATF Blacklist The FATF review entered Pakistan in the grey list in June 2018. The organization gave 27 action plans for the country to be fulfilled before September 2019 for being considered to get the country out of the grey list. The recent reviews have discovered that the country could only fulfill 7 conditions out of the 27 which will mean a bad performance by Pakistan in the lines of addressing the AML/CFT deficiencies. What can be expected during the FATF meeting in Paris on October 18, 2019? The FATF meeting in Paris on October 18, 2019 will decide what has to happen with the grey listing of Pakistan. The three possibilities in front of the country would be to get out of the grey list, to continue in the grey list or in the worst case, enter the black list. Only if three countries support the motion, Pakistan has chances of not entering the blacklist. In order to get out of the grey list, Pakistan will need the support of not less than 15 countries, which might not come through this time. So, the greatest chances are there for the country to be continued in the grey list. Implications of grey / black listing for Pakistan At a time when Pakistan is already facing a severe economic crisis, grey listing of the country will take a further toll on the country. It will make borrowing of money from other countries a difficult thing for Pakistan. The only choice for Pakistan could be to request for the International Monetary Fund (IMF) for help. If this has to come through, Pakistan will be forced to share the complete details about its foreign funding including China-Pakistan Economic Corridor (CPEC), the Chinese funded project. If this happens, it will create a serious setback for both China and Pakistan as this project has been kept as a secrecy till date for some ulterior reasons. Summary of FATF Statements from 2012 FATF February 2012 statement identified 23 countries that had not implemented the FATF standards. The list said the countries that committed and addressing the AML/CFT deficiencies included Algeria, Angola, Antigua and Barbuda, Argentina, Bangladesh, Brunei Darussalam, Cambodia, Kyrgyzstan, Mongolia, Morocco, Namibia, Nepal, Nicaragua, Sudan, Tajikistan, Trinidad and Tobago, Turkmenistan, Venezuela, and Zimbabwe. The countries that had committed, but did not make sufficient progress included Ecuador, Philippines, Vietnam, and Yemen. The 2012 FATF list also listed 17 countries as high-risk and non-cooperative including Iran, North Korea, Bolivia, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Myanmar, Nigeria, Pakistan, Sao Tome and Principe, Sri Lanka, Syria, Tanzania, Thailand, and Turkey. FATF June 2013 statement listed 14 countries that were said to have strategic deficiencies coming as risk to the international financial system including Iran, North Korea, Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Pakistan, São Tomé and Príncipe, Syria, Tanzania, Turkey, Vietnam, and Yemen. The list also mentioned that the above said countries had not made sufficient progress with regard to addressing the deficiencies and had not committed to an action plan. FATF October 2013 statement mentioned the names of 13 countries that had strategic AML/CFT deficiencies and had not made the desired progress in rectifying the deficiencies or committing to an action plan. The names of the countries included Iran, North Korea, Algeria, Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Tanzania, Turkey, and Yemen. FATF February 2014 statement listed 11 countries that posed a risk to the international financial system including Iran, North Korea, Algeria, Ecuador, Ethiopia, Indonesia, Myanmar, Syria, Turkey, and Yemen. FATF June 2014 statement listed 6 countries that did not make sufficient progress in line with rectifying the AML/CFT deficiencies including Iran, North Korea, Algeria, Ecuador, Indonesia, and Myanmar. FATF February 2015 statement listed 6 counties that had made a significant progress with regard to improving their AML/CFT regime and said these countries were no longer subject to the FATF monitoring process. The countries included Cambodia, Kuwait, Namibia, Nicaragua, Pakistan, and Zimbabwe. The FATF October 2015 statement listed three counties including Iran, North Korea and Myanmar as non-cooperative jurisdictions and high risk countries with strategic deficiencies. February 2016 FATF statement dropped Panama from the grey list and called the two countries namely Iran and North Korea to apply counter-measures. Through the FATF February 2017 statement, the FATF published the following concern regarding North Korea saying, “The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti‑money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threat this poses to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies. Further, FATF has serious concerns with the threat posed by DPRK’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing.” In November 2017, Uganda was removed from the FATF review process since the country had improved its AML/CFT regime. On the same grounds, Bosnia and Herzegovina were removed from the list in February 2018 and Iraq and Vanuatu were removed from the list in June 2018. The June 2018 Public Statement by FATF expressed its disappointment over Iran’s failure to implement its action plan to rectify the AML/CFT deficiencies. In the same Public statement, FATF grey listed Pakistan for the second time. See Also: <a data-type="tilCustomLink">Pakistan's fate hangs in balance as FATF begins meeting in Paris</a>

Explained: FATF Origin, Objectives, functions and why Pakistan is in trouble

Pakistan is likely to get four months to fulfil requirements of the Financial Action Task Force (FATF) and secure an exit from its grey list. A decision to this effect was likely to be taken by the FATF on Friday after the conclusion of the February 16-21 group meetings and plenary in Paris. The Pakistani delegation to the meetings was led by Revenue Minister Hammad Azhar. The FATF in October decided to keep Pakistan on its 'Grey' list for failure to curb funnelling of funds to terror groups Lashkar-e-Taiba, Jaish-e-Mohammed and others. If not removed off the list by April, Pakistan may move to a blacklist of countries that face severe economic sanctions, such as Iran. According to a report in the Dawn newspaper, the international terror financing watchdog was set to give Pakistan time till June 2020 to achieve full compliance with its 27-point action plan and secure exit from the FATF grey list. Sources from Paris said that Pakistan was found fully or close to fully compliant on more than half of the 27 targets. "We are satisfied with the progress so far. There was no case at all for blacklisting us," a source was quoted as saying in the report. Pakistan is already finalising major amendments to at least a dozen of its laws to meet the FATF requirements by June this year. Based on that, the country's performance would be judged in the next FATF plenary in October 2020, the report said. Pakistan submitted a 650-page review report to the FATF on January 8. The report was submitted in response to 150 questions raised by the FATF regarding new Pakistani policies on money laundering. The report outlined the steps taken by Pakistan between October 2019 to January 2020 to implement the group's recommendations. In January, Pakistan urged the US to support its bid to exit from FATF's grey list ahead of a key meeting of the international terror financing watchdog in Beijing in which Islamabad's efforts to adopt stricter laws against terror financing and money laundering were scrutinised.

Pakistan likely to get four-month breather to fulfil FATF obligations

Financial Action Task Force (FATF), the international terror financing watchdog is looking forward to take a strict action against Pakistan. With the country being on the verge to find its way onto the ‘Dark Grey’ list on October 18, the present situation signals the last warning to the nation to improve and stop money laundering and terror financing. Established in 1989, FATF is an inter-governmental body that works with the objective of curbing money laundering, financing terrorism and other kinds of threats that can challenge the integrity of the international finance system. An official privy by FATF says Pakistan has shown only an inadequate performance after being put on the grey list in June last year. The country was also given a plan to complete by October 2019 failing which Pakistan had to face the risk of being placed on the black list along with other countries including Iran and North Korea. Pakistan and the FATF grey list For the first time, Pakistan was included in the grey list in 2012 and was seen on it until 2015. In June 29, 2018, Pakistan was grey listed for the second time by the FATF. Pakistan submitted its compliance report on the 27 point action plan. The five year review by the APG concluded on August 23, 2019 and FATF said Pakistan failed to complete its action plan on the issue of terror financing. It was evident that Pakistan is on the verge of strong action as it could manage to pass only 6 of the 27 items. On Thursday, October 18, 2019, the FATF will take up the grey listing of Pakistan. What is Dark Grey List? The rules of FATF state that there is an intermediary stage between the grey and black lists namely the dark grey list. According to the information got from the official source, being entered in the dark grey list will mean an issuance of a serious warning that will give the country the last chance to improve. Dark grey was the term that FATF uses for referring to warnings up to the 3rd phase. Nowadays it is called as warning which is in the 4th phase. What are the implications if Pakistan is placed on the Dark Grey List? Finding its way to the Dark Grey List by FATF will mean some dire consequences for Pakistan. If this happens, Pakistan will find it extremely difficult to get any financial aid from the IMF, the European Union and the World Bank. This will mean a precarious condition for the country especially at a time when the country is facing a serious economic set back. What is happening right now? Countries including India, UK, US and France are pushing for a stricter action against Pakistan. While Pakistan is striving hard to get off the grey list, India is working through different channels to see that the blacklisting process of Pakistan is initiated. October 18 will be a crucial day for Pakistan. The support from China, Malaysia and Turkey will mean there are chances for Pakistan not to be blacklisted as only a minimum of three votes are needed to prevent black listing at the FATF. However, to get out of the grey list, the country will need the votes of at least 15 nations. As of now, Pakistan does not enjoy this luxury.

Pakistan's fate hangs in balance as FATF week begins, to take up 'grey list' matter on October 18

<ul><li>The terror financing watchdog has put Pakistan in the Enhanced Expedited Follow Up List. </li><li>Pakistan has also failed to keep up with 32 of the 40 compliance parameters of terror financing and <keyword id="6355008" type="UNKNOWN" weightage="20" keywordseo="Money-laundering">money laundering</keyword>. </li><li>Pakistan submitted the 27-point action plan report, the review will decide whether Pakistan will be removed from the greylist or further degrade to the blacklist. </li><li>The country has already been greylisted by the Financial Action Task Force (<keyword id="182590" type="ORGANIZATION" weightage="20" keywordseo="FATF">FATF</keyword>). </li></ul>Pakistan may be in trouble as the Asia-Pacific group — an anti-money laundering watchdog — might blacklist the country for failing to keep up with global standards. The terror financing watchdog has put Pakistan in the Enhanced Expedited Follow Up List. It held a two-days long meeting in Canberra, Australia to evaluate and analyse the country’s progress report in insurance and financial services sectors. The Financial Action Task Force (FATF) puts the Non-Cooperative Countries or Territories (NCCTs) countries which support terror funding activities, in a blacklist. If blacklisted, Pakistan will face severe financial and market restrictions. The APG is affiliated to FATF and is responsible for issues relating to crime and investigations, and also sets up intelligence units. It also implements financial provisions of the United Nations Security Council resolutions on terrorism, and evaluates a country’s ability to prevent, detect, investigate terror financing. According to <a href="https://economictimes.indiatimes.com/news/defence/fatf-asia-pacific-group-puts-pakistan-in-enhanced-blacklist-officials/articleshow/70800274.cms">new agency PTI</a>, Pakistan failed to keep up with 32 of the 40 compliance parameters of terror financing and money laundering. In fact, of the 11 terror financing parameters, Pakistan was considered low on 10. On Wednesday, Pakistan submitted the 27-point action plan report, which is still under review of the APG. The review will decide whether Pakistan will be removed from the greylist or further degrade to the blacklist. The review is likely to happen on <a href="https://www.thehindu.com/news/international/fatf-asia-pacific-group-may-blacklist-pakistan/article29222678.ece">5 September in Bangkok</a>. While the final decision will come out in October. Now, Pakistan will have to convince Financial Action Task Force (FATF) before October, when the final review of the action plan will take place. In June 2018, the country was greylisted by the FATF due to its weak domestic laws to handle and curb terror and money laundering. However, it was in the grey list during 2012-15 as well. This was after the US, France, Germany, UK pressurised the terror watchdog to greylist Pakistan. Currently, China is the President of FATF. India is an APG and FATF consultation member too. It includes members from the Ministries of Finance, External Affairs and Home Affairs. See also: <a href="https://www.businessinsider.in/pakistan-to-raise-kashmir-issue-at-icj-after-united-nations/articleshow/70757961.cms">Pakistan will drag India to International Court of Justice over the Kashmir issue after a failed attempt at UNSC</a> <a href="https://www.businessinsider.in/donald-trump-spoke-to-narendra-modi-and-imran-khan-on-the-phone/articleshow/70750857.cms">Donald Trump spoke to Narendra Modi and Imran Khan on the phone</a> <a href="https://www.businessinsider.in/hasan-minhaj-post-on-kashmir-for-indias-independence-day-has-got-people-talking/articleshow/70701526.cms">Hasan Minhaj's post on Kashmir for India's Independence Day has got people talking</a>

Here's how it will hurt Pakistan to be blacklisted for failing to curb terror financing

<ul><li>The Asia Pacific Policy Group (APPG), a regional think tank associated with the <keyword id="182590" type="ORGANIZATION" weightage="20" keywordseo="FATF">FATF</keyword>, has said that <keyword id="3001" type="LOCATION" weightage="20" keywordseo="Pakistan">Pakistan</keyword>’s recent actions to prevent terrorist groups from accessing funds are inadequate. </li><li>The country was put on a watchlist, called the “grey list”, by the FATF a few months ago for its failure to crack down on terror financing. </li><li>If Pakistan remains on the grey list, then it could see demand from foreign investors drop and the rating of its sovereign bonds downgraded by international rating agencies. </li></ul>In a review held last week, the Asia Pacific Policy Group (APPG), a regional think tank associated with the Financial Action Task Force (FATF), confirmed that Pakistan’s recent actions to prevent terrorist groups from accessing funds were inadequate. It noted the lack of progress in freezing the funds of organisations like Jamaat-ud-Dawa (JuD), the Hafiz Saeed-led group behind the Mumbai terror attacks in 2008. The country was put on a watchlist, called the “grey list”, by the FATF a few months ago for its failure to crack down on terror financing. Pakistan had earlier been on the watchlist from 2012 to 2015 for its inability to address the problem of <keyword id="6355008" type="UNKNOWN" weightage="20" keywordseo="Money-laundering">money laundering</keyword>. The FATF sets standards and assesses countries’ progress in preventing money laundering and curbing terrorist organisations’ access to finance. In June 2018, Pakistan approved a 26-point action plan devised by the APPG for it to comply with anti-terrorist financing and anti-money laundering regulations. The measures, which were envisioned to be implemented over the span of 15 months, included curbs on cross-border currency movements, stricter money-laundering controls at banks and an assessment of the financing activities of certain non-profit organisations. A thorn in the new PM’s side A lot rides on the evaluation by the APPG. Pakistan has come under criticism from the US government for its inability to stop the proliferation of homegrown terrorist networks. Earlier this month, the US said it would cut $300 million in military aid to the country. If Pakistan remains on the grey list, then it could see demand from foreign investors drop and the rating of its sovereign bonds downgraded by international rating agencies like Moody’s, which will make it more expensive for the country to access credit. In addition, financial institutions will be averse to transacting with Pakistani banks and it will also hurt he country’s chances of securing a bailout package from multilateral organisations like the <keyword id="6354424" type="COMPANY" weightage="20" keywordseo="world-bank">World Bank</keyword>. This is bound to be a problem for new Prime Minister Imran Khan as he tries to steer Pakistan out of a financial crisis characterised by dwindling forex reserves and an unmanageable debt burden. The APPG will submit the report on Pakistan to the FATF next month. Thereafter, Pakistan will be subjected to an evaluation of the first phase of its anti-terror financing reforms in December 2018. If it is unable to show any progress by then, the country could face the prospect of capital flows and foreign funding assistance drying up and the imposition of sanctions.

Pakistan is still not doing enough to curb terror financing and time is running out

<keyword id="3001" type="General" weightage="100" keywordseo="pakistan" source="Orion">Pakistan</keyword>'s exit from the Financial Action Task Force's (FATF) grey list has brought little cheer to the country's economic managers even as estimates suggest that the cumulative real GDP losses for the country due to the blacklisting had soared to $38 billion. The severe floods and rising political uncertainty have caused the country's economic situation to deteriorate further in the last few months. Ishaq Dar, the <keyword id="25455" type="General" weightage="50" keywordseo="finance" source="Orion">Finance</keyword> Minister of the country, who replaced <keyword id="1741315" type="General" weightage="50" keywordseo="miftah-ismail" source="Orion">Miftah Ismail</keyword> a month ago has had little impact on the situation. Local newspaper <keyword id="59588" type="General" weightage="80" keywordseo="dawn" source="Orion">Dawn</keyword> in its report said that forex reserves held by the country's central bank were close to nil. Of the total amount, $2.3 billion has been credited by China, $3 billion was deposited by Saudi Arabia and $1.2 billion came from the International Monetary Fund (IMF). The rest is also based on borrowings from commercial banks, the newspaper said, adding that Pakistan seems to be isolated. Though the South Asian nation has managed to avert an immediate default, its foreign exchange reserves continue to remain below the $8 billion mark. While Pakistan would require about $32 billion for debt repayment in the current financial year, on October 21, the country's foreign currency reserves stood at $7,439.9 million, a fall of $157 million compared to $7,597.2 million held by the State Bank of Pakistan on October 14. After the initial recovery soon after Dar assumed charge, the Pakistani currency is once again on a slide. On Monday, however, it managed to gain more than Rs 2 a dollar. It traded at about 220.5 to a US dollar on Monday after Friday's close of Rs 222.47. An analyst dealing with South Asia said that the economic crisis will linger "until bold reforms are implemented." "But that is not going to be the case and now with general elections inching closer, policies may be more towards populism. We saw how Miftah Ismail (Pakistan's former finance minister) was removed despite being able to steer away from a default," he told India Narrative. After Moody's, rating agency <keyword id="82981" type="General" weightage="80" keywordseo="fitch" source="Orion">Fitch</keyword> too has downgraded Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC+' from 'B-'. This will make borrowing even tougher. In its statement, Fitch said that the downgrade reflects further deterioration in Pakistan's external liquidity and funding conditions, and the decline of foreign exchange reserves. This is partly a result of widespread floods, which will undermine Pakistan's efforts to rein in twin fiscal and current account deficits. Fitch typically does not assign outlooks to sovereigns with a rating of 'CCC+' or below, it said in its statement. Earlier, Pakistan-based think tank Tabadlab said: "that FATF grey-listing, starting in 2008 and till 2019, may have resulted in cumulative real GDP losses of approximately $38 billion." The country had been put on the FATF grey list since June 2018. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/jamshed-j-irani-steel-man-of-india-who-advised-governments-and-instituted-a-cricket-trophy/slidelist/95223867.cms">Jamshed J Irani – Steel Man of India who advised governments and instituted a cricket trophy</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/twitter-bosses-entitled-to-usd-122-million-in-golden-parachute-payouts/articleshow/95224235.cms">Twitter bosses entitled to USD 122 million in 'golden parachute' payouts</a>

Pakistan's forex reserves are close to nil, says local newspaper Dawn

<ul><li>Despite pressure from Indian to put Pakistan on the "black list", the Financial Action Task Force (FATF) decided to keep the country on the "grey list".</li><li>Pakistan has been given until October 2019 to implement a comprehensive plan to curb terror financing. </li><li>In the wake of the Pulwama attack, <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> has reportedly been pressuring the FATF to take strict action against Pakistan.</li></ul> The Financial Action Task Force (FATF), an anti-money laundering and anti-terror financing monitoring body, has decided to keep Pakistan on its “<a href="https://www.businessinsider.in/pakistan-is-still-not-doing-enough-to-curb-terror-financing-and-time-is-running-out/articleshow/65839168.cms">grey list</a>”, instead of imposing harsher curbs on it. The FATF sets standards and assesses countries’ progress in preventing money laundering and curbing terrorist organisations’ access to finance. In the wake of the Pulwama attack, India had <a href="https://www.news18.com/news/india/all-eyes-on-fatf-today-as-india-pushes-for-pakistan-to-be-blacklisted-like-north-korea-and-iran-2044657.html">reportedly been pressuring</a> the FATF to take strict action against Pakistan. This could have resulted in Pakistan being placed on the FATF’s “blacklist”, which entails sanctions and comprehensive monitoring - a fate currently restricted to only Iran and North Korea. India had said that the attack demonstrated Pakistan’s inability to curb terror financing. Jaish-e-Mohammad (JeM), a Pakistan-based terrorist outfit, <a href="https://www.businessinsider.in/jaish-e-mohammad-from-pakistan-kills-45-indian-soldiers-but-government-denies-link/articleshow/68003080.cms">claimed responsibility</a> for the attack. India has accused the government in the past of enabling the JeM to carry out its operations. While Pakistan recently reinstated a ban on<a href="https://www.business-standard.com/article/pti-stories/pakistan-bans-hafiz-saeed-led-jud-and-its-charity-wing-fif-119022101117_1.html"> Jamat-ud-Dawa</a>, an organisation founded by JeM mastermind Haifz Saeed, and its charity wing, this seems to be a case of too little too late. India, meanwhile, feels that the move is largely <a href="https://indianexpress.com/article/india/pakistan-reinstates-ban-on-mumbai-attack-mastermind-hafiz-saeeds-jud-its-front-fif-5595533/">a superficial one</a>, and is aimed at placating the international community amid the FATF review. In June 2018, Pakistan was put on the FATF’s grey list, for its failure to crack down on terror financing. Pakistan had earlier been on the watchlist from 2012 to 2015 for its inability to address the problem of money laundering. If it is unable to implement a <a href="https://www.dawn.com/news/1464517">27-point plan</a> to curb money laundering and terrorist financing activities within its borders, it is scheduled to be placed on the blacklist by October 2019. If Pakistan is put on the blacklist, it will still suffer. The country will see demand from foreign investors drop and the rating of its sovereign bonds downgraded which will make it more expensive for the country to access credit. SEE ALSO: <a href="https://www.businessinsider.in/pakistan-is-still-not-doing-enough-to-curb-terror-financing-and-time-is-running-out/articleshow/65839168.cms">Pakistan is still not doing enough to curb terror financing and time is running out</a> <a href="https://www.businessinsider.in/pm-imran-khan-warns-india-it-will-retaliate-if-attacked-following-pulwama/articleshow/68062020.cms">Pakistan PM Imran Khan says the country will retaliate if India attacks</a> <a href="https://www.businessinsider.in/jaish-e-mohammad-from-pakistan-kills-45-indian-soldiers-but-government-denies-link/articleshow/68003080.cms">Pakistan denies hand in Pulwama attack claimed by a terror outfit based there</a>

Despite Indian efforts, Pakistan avoids being blacklisted for terror financing

<ul class="summary-list"><li>Russia is using illicit cash channels to fund covert activities, analysts say.</li><li>An expert took Insider through how the networks operate. </li></ul>Russia is using covert financial networks to fund its purchases of banned weapons technology, getting round Western sanctions in the process, analysts told Insider.They described in unusual detail how the schemes work.Pavlo Verkhniatskyi, a member of the International Working Group on Russian sanctions, provided exclusive insight to Insider on how Russia is exploiting the financial system.He said this helps it buy microchips, specialised tools, and other key components used to build the missiles and drones it launches every day at Ukraine."Money is poured into the financial system and becomes, you know, a driving force or fuel for those black operations," said Verkhniatskyi, referring to Russia's covert tech procurement programs.He called on the West to shift the focus of its sanctions regime and target the networks he described. He said attempts so far had only mixed success. The Russian embassy in the UK did not immediately respond to a request for comment.<h2>Dubious banks, and suitcases full of cash and diamonds </h2>Verkhniatskyi, citing Ukrainian government sources, described the financial channels Russia is using to fund its covert weapons part trade. He said that a favored tool is cash — usually the proceeds of the government's oil and gas sales. That money, he said, is then placed in accounts in countries such as Turkey and the UAE, where western sanctions are not closely enforced. Under Western sanctions, banks must investigate suspicious transactions to make sure they're not being used to circumvent sanctions. So Russia attempts to obscure the real source of the money by using intermediary banks. The purchases, Verkhniatskyi said, are brokered by networks of shell companies, which are often covers for Russian intelligence, These firms usually buy the sanctioned goods from trading firms or retailers in bulk he said.Countries <a href="https://www.businessinsider.com/ukraine-how-russia-gets-us-tech-cruise-missiles-despite-sanctions-2023-8?r=US&amp;IR=T">like Kazakhstan and Armenia,</a> with traditionally close ties to Russia and weaker business laws, are used as bases for the shell companies. Verkhniatskyi described the shell companies as "sleeping bears" some of which were set up before the invasion and were ready to activate once Western sanctions began to bite.Banks dealing in dollars, the world's default currency, in theory have to comply with American sanctions or face reprisals from the US government.But Kremlin agents have other options available that don't involve bank transfers that could trigger such checks, Verkhniatskyi said. Some shell company agents hand over suitcases full of cash to suppliers or other valuables."There is also information on Russians using diamonds as payment methods for sanctioned goods," Verkhniatskyi said, citing Ukrainian government sources. His claims are backed by a recent report by the <a href="https://news.exeter.ac.uk/faculty-of-humanities-arts-and-social-sciences/continued-use-of-illicit-finance-by-russia-threatens-international-security-and-democracy-new-report-warns/" target="_blank" rel="noopener">UK's Serious Organised Crime &amp; Anti-Corruption Evidence</a> group. It found that the Kremlin's illicit cash flows are not just funding its tech procurement programs, but also disinformation campaigns and militant groups."Illicit finance is now an integral part of Russia's foreign and security policy," wrote Professor David Lewis from the University of Exeter in the study. "It is also critical to the Russian military and security services, enabling illicit defence supply chains, facilitating military deployments overseas, and funding a growing array of parastate military units."But Russia lacks the capacity to buy the large numbers of banned tech items it needs through cash handovers alone, meaning it remains vulnerable to attempts to restrict the flow of Kremlin money through banks.<h2>Blacklisting Russia </h2>Verkhniatskyi said a vital step would be Russia on the blacklist of the Financial Action Task Force blacklist, an inter-governmental organization meant to stop financial wrongdoing. The move effectively isolates a country from the world's banking systems. The FATF briefly suspended Russia in the wake of the Ukraine invasion, a largely symbolic move meaning it was restricted from involvement at a leadership level.But it has so far hesitated in taking the more serious step of blacklisting Russia, amid concerns it could impact the neutrality of the FATF, and might not be effective. Only three countries were blacklisted as of October 2023: North Korea, Iran, and Myanmar. A larger "grey list" of more than 25 countries also does not feature RussiaBut Verkhniatskyi dismissed these concerns, and said that not punishing Russia was doing more damage to the institution's credibility. "I think that the authority of FATF is undermined when they sit at the same table with the criminal state and keep on you know, working as normal," he said.The FATF did not immediately respond to a request for comment from Insider.

Russia is using bags of cash and diamonds to avoid sanctions and fund its weapons program, expert says

New Delhi, Feb 25 () Market regulator Sebi on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms. The announcement comes after the tax haven was put on the 'grey list' of Financial Action Task Force (FATF) -- an inter-governmental policy making body that sets anti-money laundering standards. A significant percentage of foreign portfolio investors (FPIs) investing in the Indian market is registered in Mauritius. Following the FATF notice, some fund managers knocked on Sebi's door overnight, raising concerns over validity of FPI registration done through the tax haven. The regulator on Tuesday said, "Foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per FATF norms". For several years, there have been apprehensions about Mauritius being a money laundering route for FPIs due to its limited regulatory oversight. But, the Indian Ocean island nation has been taking several steps in recent years to address the concerns. ANSANS

Foreign investors from Mauritius to continue being eligible for FPI registration: Sebi

Mumbai, Feb 25 () Benchmark Sensex ended 82 points lower after a highly volatile session on Tuesday, extending losses for a third day, as investors continued to weigh the financial impact of the coronavirus pandemic on the global economy. A day after a steep fall due to concerns over Mauritius being added to the "grey list" of Financial Action Task Force (FATF), Indian equities steadied in the opening deals on Tuesday, with regulator Sebi saying that foreign investors from the island nation will continue to be eligible for FPI registration.After oscillating over 300 points during the day, the 30-share BSE gauge finally settled 82.03 points, or 0.20 per cent, lower at 40,281.20. Similarly, the broader NSE Nifty declined 31.50 points or 0.27 per cent to 11,797.90.Sun Pharma was the top loser in the Sensex pack, shedding 2.37 per cent, followed by HCL Tech, Reliance Industries, IndusInd Bank and L&amp;T.On the other hand, TCS settled 1.98 per cent higher. Tata Steel, Bharti Airtel, SBI and HUL too finished with gains.According to traders, global equity markets were still unnerved by the spread of coronavirus to countries beyond China.Investors on Dalal Street also weighed the repercussions of Mauritius being added to the "grey list" of Financial Action Task Force (FATF), they said.Market regulator Sebi on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms.On a net basis, FPIs sold equities worth Rs 1,160.90 crore on Monday, data available with stock exchanges showed.Bourses in Shanghai and Tokyo ended in the red, while Seoul and Hong Kong settled with gains.Stock exchanges in Europe were trading on a negative note in their morning sessions.Brent crude oil futures slipped 0.16 per cent to USD 55.68 per barrel.On the currency front, the Indian rupee appreciated 9 paise to 71.86 per US dollar (intra-day). Experts said, the growing risk aversion is clearly visible in the sudden spike in safe heaven asset like gold prices seen lately. In addition, the expiry weak and the fiscal year-end pressure is adding to near-term volatility.Market participants were also eyeing cues from US President Donald Trump's two-day visit to India, which will end later in the day. ANSMKJ

Sensex ends 82 pts lower; Nifty slips below 11,800

THE ANNOYANCE ENGINE: Spam robocalls became profitable scams by exploiting the phone system, but you can stop them

The just concluded winter session of <keyword id="145182" type="ORGANIZATION" weightage="20" keywordseo="Indian-Parliament">Indian parliament</keyword> will go down in the history for more reasons than one. It was just this time around that religious issues rocked the Parliament than anything else. Whether it was an inciting speech by a minister of state rank Sadhvi Niranjan Jyoti or the opposition holding the Rajya Sabha at ransom over ‘ghar wapsi’ being carried out by Vishwa Hindu Parishad and Sangh Parivar; the Parliament developed a deep gash during this session. 
 Opposition kept insisting that the <keyword id="71" type="POSITION" weightage="20" keywordseo="Prime-Minister">Prime Minister</keyword> addresses the Parliament over these issues. While Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> did give statement on the comments made by Sadhvi Niranjan Jyoti, Ghar Wapsi was something he didn’t want to mess with. He stayed away even while the opposition parties demanded his explanation on the issue. 
 It isn’t that this is the first time Parliament went this bad over PM’s presence in the house. In December 2009, the then Prime Minister Manmohan Singh stayed away from the Parliament for most of the session while the now ruling BJP sat in the opposition. Tables have turned now, with majority of BJP MPs occupying the seats. Though Congress and other parties have less or miniscule presence in <keyword id="6355187" type="ORGANIZATION" weightage="20" keywordseo="Lok-Sabha">Lok Sabha</keyword>, it was through the Rajya Sabha that the opposition parties decided to wield their swords over. 
 
In all, the winter session of the Parliament was a mix of controversy and passing of bills. Though the government managed to pass a number of legislations over some key bills that were aimed at reformation such as coal blocks allocation and insurance bill; the end result was a little less tangible than desired. 
 
The month-long session saw Lok Sabha set a record of sorts by passing 18 legislations in 22 sittings, including coal mines allocation and labour laws. 
 
A good three hours were lost owing to disruptions initially over Sadhvi Niranjan Jyoti’s remark which left Prime Minister Modi more than red-faced. This over, the crucial time at Rajya Sabha was taken over by opposition creating ruckus over Sangh Parivar’s, perhaps badly-timed programme such as Ghar Wapsi where Muslims and Christians were brought back into the folds of Hindu religion, albeit clouded in grey shades. 
 
Though RS passed 12 bills through 22 sittings, 62 hours were lost over issues that involved religious conversions and bringing back the black money into India. 
 The reforms agenda suffered a major hit with insurance laws which were to raise the cap of FDI remaining pending. The coal mines bill that would have paved way for fresh coal blocks to be allocated in fresh auction following their de-allocation by <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> in the past also remained pending. 
 
With this, the government’s to-do list seems to have just gotten longer. This disruption, which isn’t new to Indian Parliament have given the government a huge blow on its economic-overhaul plans and subsequent measures. 
 
The government had listed over 37 bills to be passed during the session that just concluded enveloped in lots of bitterness. While this number was the target, legislators in both houses only managed to pass only 11 bills out of the entire lot. Lok Sabha worked more diligently than Rajya Sabha. 
 
The reason for this could also be that while Lok Sabha had more number of BJP MPs, with the opposition parties terming it the ‘arrogance of numbers’ with BJP having 282 seats in its kitty over 545 member assembly, the otherwise peaceful Rajya Sabha saw more number of disruptions, thus causing a lot of damage to the long term goals of the government. Congress holds 68 seats in the RS against the 43 seats in the house held by BJP. 
 The only time both opposition and ruling parties came together and unanimously said something was post <keyword id="42462" type="CITY" weightage="20" keywordseo="Peshawar">Peshawar</keyword> attack where hundreds of school children were killed by extremist groups in Pakistan. All the parties unvaryingly condemned the 26/11 attack mastermind Zaki-ur-Rehman Lakhvi being granted bail by a Pakistani court. The result of this was astounding. In a rare show of strength, Pakistan didn’t release Lakhvi and he was retained in the custody of Pakistan following Pakistan’s federal government approaching the Supreme Court challenging his bail. 
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