The Financial Action Task Force (FATF) decided on Friday to keep Pakistan on the grey list for another four months, until June 2022, following the FATF Plenary held from March 1 to 4.
According to sources, the United Arab Emirates is set to be added to the global watchdog’s “grey list,” along with Turkey, Iran, and Pakistan, after the FATF plenary indicated that the Gulf nation had not made enough progress in combating illicit financial flows.
According to an official statement from the financial watchdog’s report, “FATF encourages Pakistan to continue to make progress to address, as soon as possible, the one remaining item by continuing to demonstrate that TF investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups.“
According to the FATF plenary, Pakistan provided further high-level commitment to address these strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering in June 2021, in response to additional deficiencies later identified in Pakistan’s 2019 APG Mutual Evaluation Report (MER).
“Since June 2021, Pakistan has taken swift steps towards improving its AML/CFT regime and completed 6 of the 7 action items ahead of any relevant deadlines expiring, including by demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan’s risk profile.
Pakistan should continue to work to address the one remaining item in its 2021 action plan by demonstrating a positive and sustained trend of pursuing complex ML investigations and prosecutions,” it said.
Under the German Presidency of Dr. Marcus Pleyer, delegates representing 206 members of the Global Network and observer organizations, including the International Monetary Fund (IMF), the United Nations, and the Egmont Group of Financial Intelligence Units, attended the FATF Plenary.
Energy Minister Hammad Azhar responded to the FATF announcement on Twitter. “Pakistan is now just 2 items away from completing both its FATF action plans,” he said.
“Pakistan’s completion of FATF technical parameters shall be acknowledged soon, despite challenges. Our fight against ML & TF continues with unwavering national resolve. We wage war on these activities not just for global compliances but first & foremost for our own sake,” he added.
Since June 2018, Pakistan has been on the FATF’s grey list for deficiencies in its counter-terrorism financing and anti-money laundering regimes.
Pakistan’s economy suffered a total loss of $13.43 billion from 2012 to 2015, and $10.31 billion in 2018 and 2019.
To read our blog on “FATF Announces Pakistan’s Greylist Status,” click here.
