Feature Image Credits: Hindustan Times
The Paris-based Financial Action Task Force (FATF), the global watchdog for money laundering and terror financing, has prepared a preliminary report on Pakistan’s progress on the implementation of the 27-point action plan.
The FATF will now present its findings in the next plenary meeting from June 21 under the supervision of the International Cooperation Review Group (ICRG), which includes the US, the UK, France, China, and India according to a media report.
Pakistan is on the FATF’s ‘grey list’ for a long time and only due to the support it has received from China, it has remained out of the blacklist.
Pakistan has been doing the bare minimum in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing and if it is put on the blacklist it will further hurt its economy.
According to the sources, Pakistan has implemented 26 of the 27-point FATF action plan. “There is partial progress on the point of conviction. Relevant laws have been amended. Therefore, it is hoped that there will be good news for Pakistan at the FATF’s Plenary Session starting from June 21 to 25,” the report said on Monday. However, sources said that in view of the US withdrawal from Afghanistan, Pakistan is likely to remain on the grey list as it would require two to three more months to implement the remaining one point. But in terms of performance, Pakistan is very optimistic that it will get good news from the FATF, the report said.
According to the report, Pakistan’s situation is likely to change further by September when the US forces leave Afghanistan and its influence on the FATF is expected to be diminished.
Pakistan was placed on the FATF grey list in June 2018 and was asked to implement a 27-point action plan to curb money laundering and terror financing by the end of 2019 but this deadline was extended due to the coronavirus pandemic.
In February, the FATF gave Pakistan the fourth extension to implement a 27-point action plan and “strongly urged” it to meet the remaining three conditions about terror financing investigations and the United Nations Security Council resolutions.
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