Turkey on FATF Greylist: Impact On India
Hello defence lovers! Financial Action Task Force or commonly known as FATF has greylisted Turkey where it can join its so-called friend Pakistan. In this article, we are going to discuss why Turkey has been thrown into the FATF Greylist and what implications it will have on India.
What Is FATF?
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. It is an inter-governmental body that sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
To prevent money laundering and terror financing FATF can blacklist or greylist the non-complying States. FATF Blacklist can do tremendous damage to a country’s economies. As of now only Iran and North Korea are on the FATF blacklist. The damage that the FATF blacklist can do is evident from these two countries. Before Blacklisting, FATF moves a particular country to be blacklisted to the Greylist as a warning. Currently, many countries including Pakistan and Myanmar are in the Greylist. Getting greylisted is also a huge blow to a countries’ economy. The greylisted countries cannot approach World Bank, IMF, Asian development bank, or similar organisations for loans. Foreign investments also drastically decrease further paralysing the economy.
Why Turkey Has Been Greylisted?
Along with Mali and Jordan, Turkey joins Pakistan in the FATF Greylist. Now the primary reason for greylisting Turkey is money laundering. Corruption in Turkey significantly increased over the last few years. Many high-ranking government officials were involved in state-sponsored money laundering. FATF has also accused Turkey of terror financing. According to FATF, Turkey is sponsoring many UN-designated terrorists in Syria. Turkey has also been accused of supporting anti-government forces in Syria which some countries designate as terrorists. All the charges are quite similar to that of Pakistan.
Impact On India
This event will have a very positive impact on India as Turkey was one of the few members in the FATF white list which prevented Pakistan from getting blacklisted. Now apart from China and Malaysia, nobody else is there to save Pakistan. According to some Pakistani media outlets, Pakistan has lost over $38 Billion for being in the FATF greylist. Pakistan’s economy is on the verge of collapsing. It immediately required $51 billion to survive but this time nobody is there to save Pakistan. Both the Pakistani rupee and Turkish Lira are hitting their all-time low. In such a situation it would be extremely difficult for Pakistan to continue its proxy war against India. However, Pakistan would stopping terror financing is next to impossible. Generally, countries have armies but in Pakistan, the army has its own country.
The Erdogan government is also in deep trouble now. It will be almost impossible for Erdogan to win the 2023 elections. Over the years he has been pushing the country towards Islamic radicalization. Turkey has been a secular country for a very long time and the common Turkish people are liberals. They won’t tolerate the tag of terror financer on Turkey. However, Erdogan’s desire to become the Khalifa of the 21st century has pushed the country into the FATF Greylist.
Hence we can conclude that it is a very positive development from the Indian perspective. Pakistan would eventually be blacklisted by FATF and Turkey’s anti-India stance will change.