Pakistan Removed From Terror Funding 'Grey List' Of FATF After Four Years

Pakistan Removed From Terror Funding 'Grey List' Of FATF After Four Years

Pakistan has been removed from the grey list of the Financial Action Task Force, the Paris-based global watchdog on money laundering and terrorist financing. Pakistan was placed in the grey list in 2018 for failing to keep a check on money laundering and terrorist financing. The decision was taken at the FATF plenary that started on October 20. 

Besides Pakistan, Nicaragua was removed from the FATF’s ‘grey list’ while Democratic Republic of the Congo, Tanzania and Mozambique were added to the list. Myanmar was added to the FATF’s ‘black list’.

In a statement, the FATF said Pakistan made significant progress in checking money laundering and combating financing of terrorism.

“They have (Pakistan) been removed from the grey list, however, there’s still work to be done on their part,” FATF president T Raja Kumar said.

“Pakistan is no longer subject to FATF’s increased monitoring process. It will continue to work with APG (Asia/Pacific Group on Money Laundering) to further improve its AML/CFT (anti-money laundering and counter-terrorist financing) system,” FATF said in a statement.

The order comes despite India’s repeated allegations that Pakistan continues to harbour terrorists and funds terror organisations.

Deficiencies in its legal, financial, regulatory, investigations, prosecution, judicial and non-government sector to tackle money laundering and combat terror financing led Pakistan to be inlcuded in FATF’s grey list in June 2018.

Under a 27-point action plan, Pakistan had made high-level political promises to resolve these shortcomings. The number of action points were later revised 34.

Pakistan was found to be “compliant or largely compliant” by FATF on all 34 action points in June this year.

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The FATF and Asia Pacific Group, a regional affiliate headquartered in Sydney, sent a joint 15-member mission to Pakistan from August 29 to September 2 to inspect the nation’s adherence to the 34-point action plan that was committed to FATF.

Due to it being on the grey list for over four years, cash-strapped Pakistan has faced difficulties in obtaining financial assistance from the IMF, the World Bank, the Asian Development Bank, and the European Union.

Delegates from 206 FATF members and observer organisations, including the International Monetary Fund, the United Nations, the World Bank, Interpol, and the Egmont Group of Financial Intelligence Units, attended the working group and plenary sessions in Paris.