The Financial Action Task Force (FATF) has decided to keep Pakistan on its 'grey list' until February 2021 despite complying successfully with 21 out of 27 points of action.
The decision was made by the global watchdog for curbing terror financing and money in its virtual plenary session from October 21 to 23. It reviewed Pakistan's progress on the 27-point action plan.
Minister for Industries and Production Hammad Azhar tweeted that “Pakistan has achieved impressive progress on its FATF action plan. 21 out of 27 action items now stand cleared. Remaining 6 rated as partially complete. Within a year, we progressed from 5/27 to 21/27 completed items. FATF acknowledged that any blacklisting is off the table now,”
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. It currently has 39 members including two regional organizations, the European Commission and Gulf Cooperation Council.
The Paris-based global watchdog for curbing terror financing and money laundering will hold its virtual plenary session from October 21 to 23. It will review Pakistan's progress on the 27-point action plan.
The FATF had placed Pakistan on the grey list in June 2018 and asked Islamabad to implement a plan of action to curb money laundering and terror financing by the end of 2019, but the deadline was extended later on due to the coronavirus pandemic. The country has complied with the points related to money laundering and the remaining six points pertain to terrorism financing.
According to the FATF norms, Pakistan must meet at least 13 of the 27 parameters laid down by the watchdog to come out of the “grey list.” While it may have gotten the three votes China, Turkey, and Malaysia needed to escape the black list, it would also need approval from 12 out of the FATF’s 39 members to exit the “grey list,” which it has not been able to get so far.
Pakistan's Prime Minister Imran Khan has warned that if Pakistan is blacklisted at the FATF or Financial Action Task Force then Pakistan's economy will be destroyed due to inflation and a massive fall in Pakistani Rupee.