After 4 long years, FATF removes Pakistan from the ‘grey list’

After 4 long years, FATF removed Pakistan from the ‘grey list’ on Friday.

The Financial Action Task Force (FATF) — the world’s money laundering and terror-financing watchdog had put Pakistan on its grey list of untrustworthy jurisdictions in June 2018 because of “strategic counter-terrorist financing-related deficiencies.”

Following the conclusion of the FATF plenary, in a brief statement on Friday, the Paris-based organization said it “welcomes Pakistan’s significant progress” in its anti-money laundering efforts.

“Pakistan is therefore no longer subject to the FATF’s increased monitoring process,” it added.

“The FATF welcomes Pakistan’s significant progress in improving its 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. Pakistan is therefore no longer subject to the FATF’s increased monitoring process,” the statement said.

“Pakistan will continue to work with the APG to further improve its AML/CFT system,” the statement added.

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 added that “It has two concurrent action plans. After a lot of work by Pakistani authorities, they have largely addressed all of the action plan items.”

FATF President 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.”