Pakistan remains on FATF’s grey list, UAE too added in list
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.
Total Views |
New Delhi, Mar 05:In a major blow to Pakistan who was daydreaming of being removed from Financial Action Task Force's (FATF) grey list, Global Terror Financing Watchdog has again retained Pakistan on its terrorism financing “grey list." It has asked the Imran Khan-led country to address at the earliest the remaining deficiencies in its financial system.
This decision was made after the conclusion of the four-day FATF Plenary from March 1-4.
"Since June 2021, Pakistan has taken swift steps towards improving its AML/CFT regime and completed 6 of the 7 action items ahead of any relevant deadlines expiring, including by demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan's risk profile," the FATF said in a statement.
Breaking: Pakistan remains on FATF's grey list.
— Sidhant Sibal (@sidhant) March 4, 2022
Full statement after the end of its plenary. pic.twitter.com/ln5ChcXEjy
"Pakistan should continue to work to address the one remaining item in its 2021 action plan by demonstrating a positive and sustained trend of pursuing complex ML investigations and prosecutions," it added.
Apart from Pakistan, the global financial watchdog also added the United Arab Emirates (UAE) to its "grey" watchlist. "In February 2022, the UAE made a high-level political commitment to work with the FATF and MENAFATF to strengthen the effectiveness of its AML/CFT regime," the FATF statement read.
The United Arab Emirates has entered the FATF’s Jurisdictions under Increased Monitoring list, often referred to as the 'grey list', following the conclusion of the FATF Plenary. See the full update here➡️https://t.co/cuEK8iKyJY #FollowTheMoney pic.twitter.com/u6gVWHUKJo
— FATF (@FATFNews) March 4, 2022
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.
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.
.