Pakistan to Officially Go On FATF 'Grey List'

It is highly likely that Pakistan will officially be added to the grey list of countries but not on the blacklist – a watch-list of the Financial Action Task Force on Money Laundering, an international body that monitors the involvement of providing monetary assistance to terrorism and related causes, after a Wednesday meeting.

At the FATF talks in Paris, a delegation led by Pakistani interim minister for finance and planning, Dr. Shamshad Akhtar apprised the global watchdog of steps taken by Pakistan to stifle terror financing and money laundering, Geo TV reported. In compliance with the FATF's recommendations, the Securities and Exchange Commission of Pakistan (SECP) issued the Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018 on June 20.

The FATF will decide after a week-long meeting whether Pakistan should be placed on the blacklist of countries that financially aid terrorism, a report said.

Earlier in February this year, FATF had decided to ‘unofficially’ place Pakistan back on its terrorist financing watchlist (grey list) in a move that was initiated by the United States and backed by UK, Germany, and France. India too had worked behind the scenes to get China and Gulf countries to drop their opposition to Pakistan's placement on the grey list.

Pakistan is under tremendous pressure to prove its compliance but given that the country goes to polls on July 25 this year, and a caretaker government is representing Pakistan in Paris; it is highly likely that Pakistan will seek more time from the international watchdog.

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.

In February this year, Pakistani authorities confirmed that the country was going back on the "grey list" of the FATF after a span of nearly four years. Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the FATF, a measure that officials fear could hurt the already troubled economy. (With Agency inputs)

(The above story first appeared on LatestLY on Jun 28, 2018 06:37 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).