Pakistan to remain on FATF's terror funding ‘grey list’

Islamabad, Jun 17: Pakistan will remain on the 'grey list' till Financial Action Task Force's on-site visit, the global body said on Friday during a four-day plenary session of the FATF underway in Berlin, Germany.

The watchdog said the country may be removed from the list after an on-site visit to verify the implementation of Pakistan's reform on countering terror financing mechanisms.

"At its June 2022 Plenary, the FATF made the initial determination that Pakistan has substantially completed its two action plans, covering 34 items, and warrants an on-site visit to verify that the implementation of Pakistan's AML/CFT reforms has begun and is being sustained and that the necessary political commitment remains in place to sustain implementation and improvement in the future," it said.

Former prime minister Imran Khan said that Pakistan had to complete the most challenging action plan ever given to any jurisdiction.

"Pak was nominated for grey listing by FATF in Feb 2018 & had to complete the most challenging action plan ever given to any jurisdiction. When my govt took over, we faced dire prospect of Blacklisting by that body. Our past compliance history with FATF was also not favourable," Imran Khan tweeted.

"FATF repeatedly praised work & the political will my govt demonstrated. We not only averted blacklisting, but also completed 32 out of 34 action items. We submitted compliance report on remaining 2 items in April based on which FATF now declared Pak's Action Plan as completed," he added.

"I am confident that prerequisite onsite visit of FATF team to confirm completed work on our action plan will pass successfully too. Hammad Azhar, members of his FATF coord committee & officers who worked on this task performed exceptionally well. The whole country is proud of you," he posted.

Pakistan has been on the grey list of the Paris-based Financial Action Task Force (FATF) since June 2018 for failing to check money laundering, leading to terror financing, and was given a plan of action to complete it by October 2019.

Since then, the country continues to be on that list due to its failure to comply with the FATF mandates.

With Pakistan's continuation on the grey list, it is increasingly becoming difficult for Islamabad to get financial aid from the IMF, the World Bank, the Asian Development Bank (ADB) and the European Union, thus further enhancing problems for the country.

Pakistan has so far avoided being on the black list with the help of close allies like China, Turkey and Malaysia.

The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.

The FATF currently has 39 members including two regional organisations -- the European Commission and Gulf Cooperation Council. India is a member of the FATF consultations and its Asia Pacific Group.