Pakistan stays in FATF ‘grey list’

Pakistan was retained in the “grey list” of Financial Action Task Force (FATF), which examined its efforts to counter terror financing and money laundering. The decision was taken at the meeting of the multilateral watchdog on Thursday. "Pakistan should continue to work on implementing the three remaining items in its action plan to address its strategically important deficiencies, namely by: demonstrating that TF investigations and prosecutions target persons and entities acting on behalf or at the direction of designated persons or entities; demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions and demonstrating effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists, specifically those acting for or on their behalf," the FATF said in a statement.

The anti-terror financing organisation noted that Islamabad has now largely addressed 24 of the 27 action items and gave Islamabad time till June 2021 to complete the full action plan. FATF president Marcus Pleyer said that Pakistan has made "significant progress" but "some serious deficiencies remain" and all these deficiencies are "in the realm of terror financing". Pleyer added that Pakistan "remains under increased monitoring". "I strongly urge the completion of the action plan," he said.

Pakistan has been on the FATF's grey list since June 2018. A research paper by an Islamabad-based independent think tank estimated that Pakistan sustained a total of USD 38 billion in economic losses due to FATF's decision to keep the country on its grey list, the Express Tribune reported. It further reported that the losses are worked out on the basis of a decrease in consumption expenditures, foreign direct investment and exports.Some European nations had supported the stance to keep Pakistan in the grey list also said that Islamabad has not fully implemented all the points of a plan of action set by the FATF.