Pakistan escapes FATF blacklist, but gets warning.

Byline: Mubarak Zeb Khan

ISLAMABAD -- While giving a four-month lifeline, the Financial Action Task Force (FATF) has strongly urged Pakistan to swiftly complete its full action plan by February 2020 and until then the country will remain on the 'grey list'.

The Paris-based FATF reviewed measures taken and progress made by almost 15 countries, including Pakistan, vis-a-vis anti-money laundering and combating financing of terrorism (AML/CFT) in its five-day plenary, which conAcluAded on Friday. Representatives from 206 countries and jurisdictions around the world took part in the meeting. The Pakistani delegation was led by the Minister for Economic Affairs, Hammad Azhar.

At the end of the meeting, three countries - Iceland, Mongolia and Zimbabwe - were added to the grey list, while Sri Lanka, Tunisia and Ethiopia were removed from the list as they have adequately complied with the FATF recommendations.

The news is not that good in the case of Pakistan as the global watchdog warned of action in case significant and sustainable progress is not made across the full range of action plan by the next plenary scheduled for February 2020, a statement issued by the FATF said. The action, it added, could include the FATF calling on its members and urging all jurisdictions to advise their financial institutions to give special attention to business relations and transactions with Pakistan.

Finance ministry reaffirms commitment to implementing watchdog's action plan

'To date, Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan,' the note further said.

While noting recent improvements, the FATF again expressed serious concerns with the overall lack of progress by Pakistan to address its TF (terror financing) risks, including remaining deficiencies in demonstrating a sufficient understanding of Pakistan's transnational TF risks, and more broadly, the country's failure to complete its action plan in line with the agreed timelines and in the light of TF risks emanating from the jurisdiction.

The FATF places those countries on its grey list which are not taking measures to combat terror funding and money laundering. Placement on the grey list is a warning for a country that it may be put on the blacklist in case of its failure to take effective measures against money laundering and terror financing.

In 2012, Pakistan was placed on the grey list and remained till 2015. The country...

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