According to a recent media report, The Financial Action Task Force is all set to decide on Pakistan’s grey list status in a virtual meeting scheduled later this month.
The global money laundering and terrorist financing watchdog had placed Pakistan on the grey list in June 2018 and asked Islamabad to implement a plan of action to curb money laundering and terror financing by the end of 2019 but the deadline was extended later on due to COVID-19 pandemic.
The virtual FATF plenary scheduled for October 21-23 will decide if Pakistan should be excluded from its grey list, based on a review of Islamabad’s performance to meet global commitments and standards on fight against money laundering and terror financing (ML&TF), the Dawn News reported.
The meeting was earlier scheduled in June but Islamabad got an unexpected breather after the global watchdog against financial crimes temporarily postponed all mutual evaluations and follow-up deadlines in the wake of grave health risk following COVID-19 pandemic, it said.
The agency also put a general pause in the review process, thus giving additional four months to Pakistan to meet the requirements.
In February, the FATF gave Pakistan, a four-month grace period to complete its 27-point action plan against ML&TF committed with the international community.
In its third plenary held virtually in June, the FATF decided to keep Pakistan in the grey list as Islamabad failed to check flow of money to terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).
Seeking to wriggle out of the FATF’s grey list, debt-ridden Pakistan in August imposed financial sanctions on 88 banned terror groups and their leaders, including 26/11 Mumbai attack mastermind and Jamaat-ud-Dawa (JuD) chief Hafiz Saeed, Jaish-e-Mohammed (JeM) chief Masood Azhar and underworld don Dawood Ibrahim.
The FATF meeting this month will review Pakistan’s compliance with the 13 remaining action points. The FATF will examine if the country had demonstrated remedial actions and sanctions applied in cases of violations relating to terrorist financing risk management and terror financing sanctions obligations.
The FATF will also judge if competent authorities were cooperating and taking action to identify and taking enforcement action against illegal money or value transfer services and had proven implementation of cross-border currency and bearer negotiable instruments controls at all ports of entry, including applying effective, proportionate and dissuasive sanctions.
