Sword of Damocles: FATF Review & looming repercussions for Pakistan
The Bretton Woods financial order created as a result of Bretton Woods Conference (1944) was meant to focus on the economic development of war ravaged and less developed nations. It also aimed at bolstering world trade by providing short and medium term financial assistance to countries which were experiencing temporary deficits in their balance of payments. An important component of this new financial order was the creation of two global financial institutions i.e. the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) commonly known as the World Bank. Later, another intergovernmental organization by the name of Financial Action Task Force (FATF) was established as a result of G-7 summit in 1989. The stated objective of the FATF was to save the International Financial system from the risks posed by Money Laundering (ML). The mandate of FATF was later expanded to include Counter Terrorism Financing (CTF) in 2001 and Counter Proliferation Financing (CPF) in 2010.