October 24, 2020: Paris-based global watchdog Financial Action Task Force (FATF) has decided to keep Pakistan in the grey list. FATF president Marcus Pleyer announced this decision after a three day virtual plenary session.
“To date, Pakistan has made progress across all action plan items and has now largely addressed 21 of the 27 action items. As all action plan deadlines have expired, the FATF strongly urges Pakistan to swiftly complete its full action plan by February 2021,” said FATF in a statement.
FATF cited “strategic deficiencies” and failure to comply with six key markers in its 27 point action plan on terror-financing and money-laundering.
FATF is an intergovernmental body established to develop policies on money laundering and terrorism financing. Founded by G7, FATF recommends policy measures and monitors progress in implementing its recommendations through mutual evaluations of member countries. FATF maintains a blacklist and greylist of countries. If a country is in the Blacklist, it means that country is considered an uncooperative tax haven for terror funding. The country in Greylist is considered on a way to become a haven for terrorism funding. Countries in greylist are given warning and asked to curb terror funding and money laundering. They can also face economic sanctions, international boycott, and reduction in international trade.
