On Monday, Noting that Pakistan’s measures against money laundering and terror financing is not yet sufficient to justify a re-rating, a regional affiliate of the Financial Action Task Force has Put the country on its Enhanced Follow-up list.
The development came only a few weeks ahead of the meeting of the FATF the Paris based global money laundering and terrorist financing watchdog to decide on Pakistan’s grey list status.
The first Follow-Up Report on Mutual Evaluation of Pakistan released by the Asia-Pacific Group (APG) underlined that the country’s progress on the 40 FATF recommendations on the effectiveness of anti-money laundering and combating financing terror (AML/CFT) system largely remained unchanged — non-compliant on four counts, partially compliant on 25 counts and largely compliant on nine recommendations, reported the Dawn News.
Pakistan has improved its full compliance on only two of the 40 FATF recommendations, the APG report noted.
In its 12-page report he APG concluded: “Pakistan will remain in enhanced (expedited) follow up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures.”
The APG report noted that though the country has taken measures on recommendations pertaining to money laundering and terror financing, the progress is not yet sufficient to justify a re-rating.
Enhanced follow-up is an intensive process of correction that deals with members with significant deficiencies (for technical compliance or effectiveness) in their AML/CFT systems.
