The Financial Action Task Force (FATF), a global anti-money laundering watchdog, announced that Pakistan would remain on its “grey list,” but besides Islamabad’s “quick steps” to improve its anti-money laundering (AML) and counter-terrorist financing (CFT) regimes.
Pakistan was added to the FATF’s grey list of countries in 2018 due to lax controls on terror financing and money laundering. FATF President Marcus Pleyer stated in June of last year that Islamabad had made “significant progress,” but that there were still “serious deficiencies” in mechanisms to combat money laundering and terrorism financing.
Including the initial 27 points to get off the grey list, the country was given another seven-point action plan to implement. Countries on the list collaborate actively with the FATF to address strategic flaws in their anti-money laundering, anti-terrorist financing, and anti-proliferation financing systems.
The FATF announced late Friday that Pakistan had completed six of the seven action plan items highlighted by the watchdog’s Asia Pacific Group (APG) in 2021 in a statement issued at the conclusion of its hybrid plenary meeting on March 1-4.
“Since June 2021, Pakistan has taken swift steps toward getting better its AML/CFT regime, completing six of the seven action items ahead of any relevant deadlines, including by proving that it is boosting the impact of sanctions by nominating individuals and entities for UN designation and restricting and seizing proceeds of crime in line with Pakistan’s risk profile,” the statement said.
The Paris-based watchdog urged Islamabad to finish the last action item in its 2021 action plan by “illustrating a positive and maintained trend of pursuing complex money laundering investigations and prosecutions.”