Pakistan retained in FATF ‘grey list’, asked to do more to counter terror financing

“Pakistan has completed 26 of the 27 action items in its 2018 action plan… Pakistan provided further high-level commitment to address these strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering,” the task force noted in its review of the country’s performance.

The Financial Action Task Force (FATF) on Friday decided to retain Pakistan in the list of “Jurisdictions subject to increased monitoring”, commonly known as the “grey list”, up till June 2022 when its performance will be reviewed again.  

“Pakistan has completed 26 of the 27 action items in its 2018 action plan… Pakistan provided further high-level commitment to address these strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering,” the task force noted in its review of the country’s performance.

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The task force encouraged Pakistan to display progress on the last remaining item by bringing the leaders of UN-designated terror groups to justice as well as crack down on terror financing.

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Notorious leaders such as Masood Azhar of the Jaish-e-Mohammed and Hafiz Saeed of the Jamaat-ud-Dawah have enjoyed protection from prosecution from the Pakistani deep state which has led to the country attract a lot of criticism from international anti-terror watchdogs.

The June 2022 plenary will convene to review Pakistan’s performance in anti-money laundering (AML) and combating the financing of terrorism (CFT) acts which will then decide whether to keep the country in the “grey list” or drop from it.

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The grey list currently has 23 countries in it, with the United Arab Emirates being the latest entrant. Zimbabwe was taken off the list.

The FATF was founded on the initiative of the G-7 countries to formulate policies to combat money-laundering as well as terror financing.

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It was formed in 1989. It is headquartered in Paris, France and has 39 members, 37 countries and two regional organizations (European Commission and Gulf Cooperation Council). India is one of the countries which are part of it.

Even during the previous FATF meeting in October 2021, the organization had noted that Pakistan had addressed 26 out of 27 items on the action plan. And that it needs to put more effort in cracking-down on money-laundering.

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Pakistan has been included in the “grey list” since June 2018.

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Pakistan’s close ally Turkey was included in the “grey list” in the same October 2021 plenary.

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