FATF Removes Pakistan From Grey List

FATF Removes Pakistan

On Friday, Pakistan was removed off a list of nations that are subject to “enhanced monitoring,” often known as the “grey list,” by the Financial Action Task Force (FATF), a global organisation that monitors money laundering and the financing of terrorism.

Prior to the FATF press conference, the statement was made by Foreign Minister Bilawal Bhutto-Zardari, who praised the nation for the accomplishment.

Pakistan Was Include In FATF Grey List

Due to shortcomings in its legal, financial, regulatory, investigations, prosecution, judicial, and non-government sectors to combat money laundering and combat terror financing, Pakistan was added to the list of jurisdictions subject to increased monitoring in June 2018 and was deemed a serious threat to the global financial system.

Under a 27-point action plan, Islamabad made high-level political pledges to resolve these shortcomings. However, later on, 34 action points were added.

Since then, the nation has actively collaborated with FATF and its affiliates to strengthen its legal and financial systems against money laundering and the financing of terrorism in order to comply with 40 FATF recommendations and meet international standards.

From August 29 to September 2, a joint delegation of 15 people from the FATF and Asia Pacific Group, the regional affiliate of the FATF with a base in Sydney, visited Pakistan to check on the status of the nation’s adherence to the FATF’s 34-point action plan.

Last Day: Pakistan Is Likely To Be Removed From The FATF’s “Grey List” This Week 

The authorities who had kept the delegation’s visit to the country under wraps later referred to it as “a smooth and successful tour.” In accordance with the FATF Plenary’s authorization of an on-site visit in June 2022, the delegation had extensive discussions with pertinent agencies.

The objective of the visit, according to the Foreign Office, was to confirm in person Pakistan’s high-level commitment to and sustainability of reforms in the AML/CFT regime. The Foreign Office also stated that it looked forward to the evaluation process’ logical conclusion. The FATF International Cooperation Review Group and plenary meetings will consider the report of the on-site team.

Pakistan said that after four years of persistent and arduous work, it had not only achieved a high level of technical conformity with FATF standards but also assured high levels of efficacy by putting into practise two extensive FATF action plans.

Pakistan was determined to be “compliant or mainly compliant” with FATF’s 34 requirements in June of this year. FATF then chose to send an onsite team to confirm this on the ground before publicly declaring Pakistan’s removal from the grey list, which eventually happened in August and September.

In terms of technical adherence to FATF requirements, Pakistan was evaluated by APG as “compliant or mainly compliant” in 38 out of 40 FATF recommendations in August of this year, placing it among the top-performing nations globally.

The Foreign Office stated last month that the FATF technical team’s visit had been “successful” and that Islamabad anticipated the evaluation process’ “logical completion” in October.

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