PARIS: The Financial Action Task Force (FATF) has taken Pakistan’s off its inglorious grey-list, the international watchdog said in a summary document issued ahead of its press conference Friday.
“The FATF welcomes Pakistan’s significant progress in improving its Anti-Money Laundering / Combatting the Financing of Terror (AML/CFT) regime,” it said.
“Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total,” it continued.
“Pakistan is therefore no longer subject to the FATF’s increased monitoring process. Pakistan will continue to work with APG to further improve its AML/CFT system.”
Pakistan has appeared on the FATF greylist multiple times since 2008, signaling the organization’s heightened scrutiny of money laundering and terrorism financing in the country.
This greylist designation has had a significant impact on Pakistan’s economy, particularly its financial services industry. FATF concerns had also impacted the country’s IMF program: one of the conditions in the recent $6 billion bailout was the requirement that Pakistan comply with FATF guidelines.