Will Pakistan remain in FATF’s gray list
21 October 2020
PARIS: Pakistan is likely to remain on the gray list at the Financial Action Task Force meeting, but the threat of Pakistan being blacklisted has been averted.Will Pakistan remain in FATF’s gray list
According to the details, the three-day virtual meeting of the Financial Action Task Force is going to start from today and will continue till October 23. The meeting will review the progress made by Pakistan on prevention of money laundering and terror financing. ۔
Diplomatic sources said that Pakistan would not be able to get out of the gray list in the meeting of the Financial Task Force but it was not possible for Pakistan to be blacklisted.
Media player poster frame
According to sources, Pakistan is likely to get out of the gray list in the first half of next year. Pakistan may get an on-site visit in February next year. In this visit, the action points will be reviewed by visiting Pakistan. ۔
Diplomatic sources said that Pakistan has 6 out of 27 action points for compliance while Pakistan has completed most of the action points of FATF. Most of the remaining action points are related to FATF.
The International Cooperation Review Group report acknowledged action on 21 action points. The FATF had provided 27 action points to Pakistan for compliance. So far, Pakistan has implemented 21 action points.
According to sources, till February this year, Pakistan had complied with 14 action points, 16 times legislation has been enacted in Pakistan regarding FATF.
It may be recalled that in June 2018, the FATF added Pakistan to its gray list. Pakistan was given time till October 2019 to take necessary steps in this regard, which was later extended for another four months.
Pakistan promised to develop an effective system for enacting and implementing the necessary legislation within the given deadline, after which in 2020 the FATF recognized that Pakistan had provided the task force. Fourteen of the 27 demands have been implemented, but the FATF has placed Pakistan on the gray list, expressing concern over the lack of progress in further areas.
Following the FATF’s gray list, Pakistan has taken a number of significant steps, including amendments to existing anti-money laundering and terrorist financing laws, including action and arrests against banned organizations.