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Pakistan and Nicaragua have been taken off the FATF's "grey list," while Myanmar was blacklisted

The Financial Action Task Force added Myanmar to its "blacklist" today (Friday), citing the military junta's "continued lack of progress" in the country.

Tanzania, Mozambique, and the Democratic Republic of the Congo were added to the FATF "grey list."


Pakistan and Nicaragua received good news as they were taken off the grey list.


Delegates gathered in Paris still declined to exclude Moscow from the FATF, despite the addition of new restrictions.


According to a statement from the organization, "FATF reiterated its deepest sympathies for the needless loss of life, suffering and destruction caused by the ongoing Russian invasion of Ukraine."


The FATF's key principles, which are intended to ensure security, safety, and the integrity of the financial system, are still being broken by Russia. The FATF has decided to put additional limits on the country's remaining involvement as a result of Russia's ongoing conduct, including by excluding them from taking part in existing and upcoming FATF initiatives, the task force stated.


As a FATF Member, Russia is prohibited from attending meetings of Regional Bodies Modeled After FATF, according to the statement.

These sanctions build on the ones the FATF made in June, which included restricting Russia's ability to hold any leadership positions. The FATF will keep an eye on the situation and decide if there are sufficient reasons to abolish or amend these limits at each of its Plenary sessions.


The agency claimed that Myanmar, once known as Burma, had repeatedly failed to resolve AFC shortcomings. The nation is largely regarded as a conduit for illicit drugs and weapons where the junta fills its own pockets.


The world economy was urged to take "enhanced due diligence" precautions commensurate with the dangers associated with the country.


Countries should make sure the flow of money for "humanitarian assistance, legitimate NPO activity and remittances are not disrupted."


Representatives from 206 Global Network members and observers, including those from the International Monetary Fund, the United Nations, the World Bank, and the Egmont Group of Financial Intelligence Units, attended the plenary meeting.


The anti-money laundering (AML) and counter-terrorism financing (CTF) systems were found to have "strategic deficiencies," according to FATF President T. Raja Kumar, who was speaking at today's press conference.


"Nicaragua has taken steps to improve its systems including conducting more effective risk-based supervision effective team visits to the country and verify the reforms," the FATF President stated in praising those who had been "de-listed" for their efforts.


"A lot of work by the Pakistani authorities, they have worked through two separate action plans and completed a combined 34 action items to address deficiencies," he continued.


The "significant progress" was appreciated, but he emphasized that this did not imply "there isn’t more work to do."


To continue bolstering its systems, Pakistan "will need to work with the fairest regional partner, the Asia Pacific group," he added.


After spending two and a half years on the grey list of the FATF, the president announced that Myanmar will be placed on the blacklist for "failing to address a large number of strategic deficiencies."


"These were first identified in a report in September 2018. More than four years later, many of those issues remain as a result, further calls on countries to apply enhanced due diligence to business relations and transactions in relation to Myanmar ," he noted.


He urged this jurisdiction to "swiftly complete the targeted action plan to address the strategic deficiencies identified in the country" under intensified supervision by the body.


He emphasized that countries must make sure there are "no blanket measures that disrupt the flow of humanitarian funds” or harm funding for ‘legitimate and pure activity".

By fLEXI tEAM


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