International Affairs, FATF (Financial Action Task Force)
Why in News?
Pakistan has been listed in the Grey list by the Paris based FATF (Financial Action Task Force) on 29th June 2018.
India has welcomed this move.
“We hope that the FATF Action plan shall be complied with in a time bound manner and credible measures would be taken by Pakistan to address global concerns related to terrorism emanating from any territory under its control,” said the spokesperson of the MEA.
Pakistan was on the Grey List of FATF between years 2012-15 but was taken off the list.
But subsequent terror attacks on Indian targets by groups like Lakshar-e-Taiba (LeT) and Jaish E Mohammed revived the international demand to place the country back in the list.
What is FATF?
The Financial Action Task Force (FATF) 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.
The French name for FATF is Groupe d’action financiere (GAFI)
In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
The current mandate of the FATF (2012-2020) was adopted at a Ministerial meeting in April 2012.
The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
The FATF’s decision making body, the FATF Plenary, meets three times per year.
What are the recommendations given by FATF to its member states?
FATF has formulated 40 recommendations for its member states. Some of the important recommendations include:
Implement relevant international conventions
Criminalise money laundering and enable authorities to confiscate the proceeds of money laundering
Implement customer due diligence (e.g., identity verification), record keeping and suspicious transaction reporting requirements for financial institutions and designated non-financial businesses and professions
Establish a financial intelligence unit (FIU) to receive and disseminate suspicious transaction reports, and
Cooperate internationally in investigating and prosecuting money laundering
What are the implications for Pakistan on being on the Grey list of FATF?
Being on the Grey List will require Pakistan to meet additional guarantees while borrowing finance from the international donors like the IMF and other such entities.
The decision to place Pakistan back in the Grey List was taken following the Plenary session of FATF in February, but it finally came into force in June 2018.
Contempt Of Court
G.S. Paper 2
Why in news?
The Supreme Court has blamed the Centre for showing sheer contempt of court by not framing the Cauvery draft scheme.
CONTEMPT OF COURT:
Contempt of court is often also referred to as “contempt”.
It is the offence of being disobedient towards a court of law and its authorities in the form of behaviour that opposes or defies the dignity of the court.
It manifests itself in wilful disregard of the authority of a court of law.
There are broadly two categories of contempt:
being rude to legal authorities in the courtroom
willfully failing to obey a court order
When a court decides that an action constitutes contempt, it issues an order called “found” or “held” in contempt which declares a person or organisation is found to have disobeyed the court.
This is likely to jeopardise a fair trial.
Besides, those found guilty of contempt of court may have to pay a fine or even go to jail.
In India contempt of court is of two types:
Under Section 2(b) of the Contempt of Courts Act of 1971, civil contempt has been defined as wilful disobedience to any judgment, decree, direction, order, writ or other process of a court or wilful breach of an undertaking given to a court.
Under Section 2(c) of the Contempt of Courts Act of 1971, criminal contempt has been defined as the publication (whether by words, spoken or written, or by signs, or by visible representation, or otherwise) of any matter or the doing of any other act whatsoever which:
Scandalises or tends to scandalise, or lowers or tends to lower the authority of, any court, or
Prejudices, or interferes or tends to interfere with the due course of any judicial proceeding, or
Interferes or tends to interfere with, or obstructs or tends to obstruct, the administration of justice in any other manner.