Paris: The Financial Action Task Force (FATF) — the world’s money laundering and terror-financing watchdog — said that Pakistan has been removed from the grey list and is no longer subject to its increased monitoring process.
The Paris-based inter-governmental body had put Pakistan on its grey list of untrustworthy jurisdictions in June 2018 because of “strategic counter-terrorist financing-related deficiencies.”
FATF President Raja Kumar, in his press conference at the conclusion of its plenary, stated that Pakistan had been on the grey list since 2018.
He said: “It has two concurrent action plans. After a lot of work by Pakistani authorities, they have largely addressed all of the action plan items.”
Kumar maintained that the task force had conducted an onsite visit at the end of August. “The onsite team verified that there is a high level of commitment from the Pakistani leadership, sustainability of reforms and commitment to make improvements in the future,” he said.
“As a result of these action plans, Pakistan has made significant improvements to strengthen the effectiveness of this framework for combating terrorism financing.”
Pakistan will continue to work with APG
In its brief statement, the financial watchdog welcomed Pakistan’s significant progress in improving its anti-money laundering and counter-financing of terrorism (AML/CFT) regime.
“Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total,” it read.
It should be noted that Pakistan is therefore no longer subject to the FATF’s increased monitoring process.
“Pakistan will continue to work with Asia Pacific Group (APG) to further improve its AML/CFT system,” it further added.
‘Pakistan has been whitelisted’
Addressing a press conference, Minister of State for Foreign Affairs Hina Rabbani Khar said: “I am pleased to announce that as a result of our sustained efforts during the last four years, acknowledgement of our unwavering political commitment and the successful on-site visit, FATF has fully recognised completion all substantive, technical as well as procedural requirements of Pakistan’s 2018 and 2021 Action Plans.”
She further said that FATF has unanimously decided to remove Pakistan from the “list of jurisdictions under increased monitoring”.
“In simpler terms, Pakistan has been whitelisted by FATF,” she revealed.
Highlighting some of the main points she stated:
FATF has welcomed Pakistan’s significant progress in improving our AML/CFT regime
It has been recognised that Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies and commitments of its Action Plans comprising of total 34 action items
Pakistan has addressed all strategic deficiencies that FATF identified in June 2018 and June 2021
Pakistan completed the 2021 Action Plan in advance of the deadlines
Pakistan is no longer subject to the FATF’s increased monitoring process, which means, Pakistan has been whitelisted by FATF
To advance and promote international cooperation, Pakistan will continue to work with APG to further improve its AML/CFT system
‘Long, arduous journey’
She recalled that during the last four years, Pakistan has undertaken broad-based and comprehensive legal, administrative and procedural reforms to improve all aspects of our domestic AML/CFT regime.
