In a setback, Pakistan may face action from Financial Action Task Force
ISLAMABAD: The Financial Action Task Force (FATF) has decided to keep Pakistan in the grey list for four more months for its insufficient ability to curb money laundering and terror financing, said a statement issued by the Finance Division after a review meeting in Paris.
“FATF members agreed to maintain Pakistan’s status on FATF’s Compliance Document, normally referred [to] as the Grey List,” the FATF press release said and “strongly urged” Pakistan to “swiftly complete” its full action plan by June 2020.
“Otherwise, should significant and sustainable progress especially in prosecuting and penalising TF (terror financing) not be made by the next Plenary, the FATF will take action,” it added.
It said such action could include calling on its members to order their financial institutions to give particularly rigorous attention to business relations and transactions with Pakistani clients.
The anti-terror financing watchdog will take up Islamabad’s case in June again to decide whether the country complied with its objective to evade the grey list.
According to the Finance Division, Pakistan made “significant progress” in the implementation of the 27-point FATF Action Plan during its last review, which was demonstrated by the completion of nine additional action items.
“FATF reviewed the progress made by Pakistan towards the implementation of the Action Plan.
While acknowledging the steps taken by Pakistan towards the implementation of [the plan] and welcoming its high-level political commitment, FATF highlighted the need for further actions for completing the Action Plan by June 2020,” the handout said.