FATF removes Pakistan from the ‘grey list’.
PARIS — The Financial Action Task Force (FATF), the world’s money-laundering and terror-financing watchdog, announced on Friday that Pakistan has been removed from the grey list and is no longer subject to its enhanced monitoring process.
In June 2018, the Paris-based intergovernmental body placed Pakistan on its grey list of untrustworthy jurisdictions due to “strategic counter-terrorist financing-related deficiencies.”
In his press conference following the FATF plenary, FATF President Raja Kumar stated that Pakistan had been on the grey list since 2018.
“It has two concurrent action plans,” he explained. Pakistani authorities have largely addressed all of the action plan items after a lot of hard work.”
Kumar insisted that the task force had visited the site at the end of August. “The onsite team verified that the Pakistani leadership has a high level of commitment, that reforms are sustainable, and that there is a commitment to make improvements in the future,” he said.
“As a result of these action plans, Pakistan has significantly improved the effectiveness of this framework for combating terrorism financing.”
Pakistan will keep collaborating with APG.
The financial watchdog applauded Pakistan’s considerable advancements in strengthening its anti-money laundering and counter-financing of terrorism (AML/CFT) system in a brief statement.
According to the statement, “Pakistan has improved the efficiency of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was finished ahead of the deadlines, encompassing 34 action items in total.
Pakistan has been put on a whitelist.
In a statement to the media, Minister of State for Foreign Affairs Hina Rabbani Khar said: “I am pleased to announce that FATF has fully recognised completion of all substantive, technical, as well as procedural requirements of Pakistan’s 2018 and 2021 Action Plans as a result of our sustained efforts over the last four years, acknowledgement of our unwavering political commitment, and the successful on-site visit.”
She added that Pakistan has been removed off the “list of jurisdictions under intensified monitoring” by FATF, which was decided upon unanimously.
In plainer terms, she said, “FATF has whitelisted Pakistan.”
As a result, Pakistan is no longer included in the FATF’s heightened surveillance process.
Pakistan will keep cooperating with Asia Pacific Group (APG) to enhance its AML/CFT system, the statement continued.
She emphasised some of the key themes as follows:
FATF has praised Pakistan for making significant improvements to our AML/CFT regime.
It is acknowledged that Pakistan has improved the efficiency of its AML/CFT regime and addressed the technical issues and pledges of its 34-item Action Plans.
Pakistan has corrected every strategic flaw that the FATF found between June 2018 and June 2021.
Pakistan finished the 2021 Action Plan ahead of schedule
Pakistan has been placed on FATF’s “white list” since it is no longer subject to the organization’s stricter monitoring regime.
Pakistan will continue working with APG to expand and promote international collaboration by further enhancing its AML/CFT system.
