FATF decides to keep Pakistan on its Grey List till June this year

Global money laundering watchdog the Financial Action Task Force (FATF) yesterday decided to keep Pakistan on its terrorism financing Grey list. In an online press briefing from Paris, FATF President Marcus Pleyer said, Islamabad had made progress, but was yet to complete its action plan to overcome deficiencies in its combating of money laundering and terrorism financing.

FATF said, Islamabad should demonstrate effective implementation of targeted financial sanctions against all the designated terrorists. It said, Pakistan must demonstrate in taking action against UN-designated terrorists and their associates. FATF also said, Pakistan courts must give effective, decisive and proportionate punishment to those involved in terrorism. It also said, Pakistan must have an effective system to deal with terror financing.

Once Pakistan completes three unfulfilled tasks, the FATF will verify and take decision on Islamabad’s present status in June plenary. The deadline given to Pakistan has already expired and it asked the country to address tasks as quickly as possible.

The FATF is an inter-governmental body set up in 1989 to combat money laundering, terror financing and other related threats to the international financial system. Currently, it has 39 members. Pakistan has been on the Grey list since June 2018.

In its plenary held in October last year, the FATF had kept Pakistan on the Grey list citing its failure to fulfill six out of 27 obligations of the global money laundering and terrorist financing watchdog.