Explained: Why Pakistan remained in the grey list

New Delhi, Feb 22: Pakistan has been warned by the Financial Action Task Force. Pakistan will remain on the grey list until June 2020 and if it fails to act on terror funding, it may just be downgraded to the black list.

What the FATF said:

The Financial Action Task Force on Friday warned Pakistan that it would be downgraded to the black list and face greater scrutiny if fails to implement an action plan to counter terror financing and money laundering.

Deadlines:

All deadlines for the 27 point action plan had expired, the FATF said while expressing concerns at Pakistan's failure to implement the plan according to the agreed timelines.

"All deadlines in the action plan have expired. While noting recent and notable improvements, the FATF again expresses concerns given Pakistan's failure to complete its action plan in line with the agreed timelines and in light of the [terror financing] risks emanating from the jurisdiction," the FATF said in a statement.

Prosecute and penalise:

"The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020. Otherwise, should significant and sustainable progress especially in prosecuting and penalising [terror financing] not be made by the next Plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdiction to advise their [financial institutions] to give special attention to business relations and transactions with Pakistan," the statement further read.