The FATF is the global money laundering and terrorist financing watchdog. The inter- governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.

It currently comprises 37 member countries (including India) and 2 regional organizations-European Commission and Gulf Co-operation Council.

It was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering.

Pakistan is likely to remain on the grey list of the Financial Action Task Force (FATF) for failing to comply with its deadline to prosecute and penalise terrorist financing in the country.