Published On: Fri, Oct 18th, 2019

FATF keeps Pakistan in grey list, hands a final 4-month lifeline

Paris: The Financial Action Task Force (FATF) on Friday formally announced that Pakistan will remain on its grey list for the next four months, handing it a final lifeline.

Pakistan should continue to work on implementing its action plan to address its strategic deficiencies

FATF President Xiangmin Liu, while expressing satisfaction over steps taken by Pakistan against terrorism and corruption, on Friday announced that Pakistan will remain on its Grey List till February 2020.

The decision was taken after a five-day plenary of the FATF. The inter-governmental organization has urged Pakistan to address all tasks given to it till February 2020.

The FATF examined the compliance report of Pakistan in its meeting and expressed satisfaction over new risk assessment study of Pakistan. China, Turkey and Malaysia, have supported the stance of Pakistan.

The Pakistani officials assured the FATF that Islamabad adheres to all FATF targets and anti-money laundering laws have been made according to international standards.

The task force directed Islamabad to take more measures for complete elimination of terror financing and money laundering while expressing serious concerns over the lack of progress in addressing terror financing risks.

“The FATF strongly urges Pakistan to swiftly complete its full action plan by February 2020,” it said in its statement. “Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary, the FATF will take action.”

“Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and the Asia-Pacific Group (APG) to strengthen its anti-money laundering (AML) and counter terror financing (CTF) regime and to address its strategic counter-terrorist financing-related deficiencies, Pakistan has made progress towards improving its AML/CFT regime, including the recent development of its money laundering/terror financing risk assessment,” the FATF said.

At the October 2019 plenary, according to the statement, the country reiterated its political commitment to completing its action plan and implementing AML/CFT reforms.

“Pakistan should continue to work on implementing its action plan to address its strategic deficiencies,” it added.

However, the FATF again expresses serious concerns with the overall lack of progress by Pakistan to address its TF risks, including remaining deficiencies in demonstrating a sufficient understanding of Pakistan’s transnational TF risks, and more broadly, Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the TF risks emanating from the jurisdiction,” the statement read.

“To date, Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan.

“The FATF strongly urges Pakistan to swiftly complete its full action plan by February 2020.”

The FATF has linked the blacklisting of Pakistan with unsatisfactory steps to curb money laundering and terror financing. The final decision will be made in February 2020.

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