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Consider the following statements regarding FATF Grey List.
- Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list.
- The inclusion into grey list serves as a warning to the country that it may enter the blacklist.
- For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.
Which of the above statements is/are correct?
- a)1, 2
- b)1, 3
- c)2, 3
- d)1, 2, 3
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding FATF Grey List. Countries ...
- Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list.
- While the words ‘grey’ and ‘black’ list do not exist in the official FATF lexicon, they designate countries that need to work on complying with FATF directives and those who are non-compliant, respectively.
- At the end of every plenary meeting, FATF comes out with two lists of countries.
- The grey countries are designated as “jurisdictions under increased monitoring”, working with the FATF to counter criminal financial activities. For such countries, the watchdog does not tell other members to carry out due-diligence measures vis-a-vis the listed country but does tell them to consider the risks such countries possess.
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Consider the following statements regarding FATF Grey List. Countries ...
FATF Grey List
Statement 1: Countries considered as safe havens for supporting terror funding and money laundering are put in the FATF grey list.
Statement 2: The inclusion into the grey list serves as a warning to the country that it may enter the blacklist.
Statement 3: For such countries listed on the grey list, FATF tells other members to carry out due-diligence measures vis-a-vis the listed country.
Explanation:
The Financial Action Task Force (FATF) is an inter-governmental organization that aims to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. It sets global standards and promotes effective implementation of legal, regulatory, and operational measures to combat these threats.
Statement 1: Countries considered as safe havens for supporting terror funding and money laundering are put in the FATF grey list.
This statement is correct. The FATF identifies jurisdictions with strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes and places them on the grey list. These countries are assessed based on various criteria, including the effectiveness of their legal and regulatory frameworks, their enforcement efforts, and their cooperation in international efforts to combat money laundering and terrorist financing.
Statement 2: The inclusion into the grey list serves as a warning to the country that it may enter the blacklist.
This statement is correct. The inclusion in the grey list is a warning to the country that it needs to take immediate action to address the identified deficiencies. If the country fails to take adequate measures, it may face further consequences, including being placed on the blacklist. Being on the blacklist can have severe economic and reputational implications for the country.
Statement 3: For such countries listed on the grey list, FATF tells other members to carry out due-diligence measures vis-a-vis the listed country.
This statement is incorrect. When a country is placed on the grey list, FATF urges its members to implement enhanced due diligence measures when dealing with financial transactions involving the listed country. This is to ensure that the risks associated with money laundering and terrorist financing are properly mitigated. The due diligence measures include conducting more thorough customer due diligence, ensuring enhanced scrutiny of transactions, and considering the potential impact on the risk profile of the transactions.
In conclusion, statements 1 and 2 are correct, while statement 3 is incorrect. Countries on the FATF grey list are those considered as safe havens for supporting terror funding and money laundering. The inclusion in the grey list serves as a warning to the country, indicating that it may enter the blacklist if it fails to address the identified deficiencies.
Statement 1: Countries considered as safe havens for supporting terror funding and money laundering are put in the FATF grey list.
Statement 2: The inclusion into the grey list serves as a warning to the country that it may enter the blacklist.
Statement 3: For such countries listed on the grey list, FATF tells other members to carry out due-diligence measures vis-a-vis the listed country.
Explanation:
The Financial Action Task Force (FATF) is an inter-governmental organization that aims to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. It sets global standards and promotes effective implementation of legal, regulatory, and operational measures to combat these threats.
Statement 1: Countries considered as safe havens for supporting terror funding and money laundering are put in the FATF grey list.
This statement is correct. The FATF identifies jurisdictions with strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes and places them on the grey list. These countries are assessed based on various criteria, including the effectiveness of their legal and regulatory frameworks, their enforcement efforts, and their cooperation in international efforts to combat money laundering and terrorist financing.
Statement 2: The inclusion into the grey list serves as a warning to the country that it may enter the blacklist.
This statement is correct. The inclusion in the grey list is a warning to the country that it needs to take immediate action to address the identified deficiencies. If the country fails to take adequate measures, it may face further consequences, including being placed on the blacklist. Being on the blacklist can have severe economic and reputational implications for the country.
Statement 3: For such countries listed on the grey list, FATF tells other members to carry out due-diligence measures vis-a-vis the listed country.
This statement is incorrect. When a country is placed on the grey list, FATF urges its members to implement enhanced due diligence measures when dealing with financial transactions involving the listed country. This is to ensure that the risks associated with money laundering and terrorist financing are properly mitigated. The due diligence measures include conducting more thorough customer due diligence, ensuring enhanced scrutiny of transactions, and considering the potential impact on the risk profile of the transactions.
In conclusion, statements 1 and 2 are correct, while statement 3 is incorrect. Countries on the FATF grey list are those considered as safe havens for supporting terror funding and money laundering. The inclusion in the grey list serves as a warning to the country, indicating that it may enter the blacklist if it fails to address the identified deficiencies.
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Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding FATF Grey List. Countries considered as safe haven for supporting terror funding and money laundering are put in the FATF grey list. The inclusion into grey list serves as a warning to the country that it may enter the blacklist. For such countries listed on grey list, FATF tell other members to carry out due-diligence measures vis-a-vis the listed country.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
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