After its meeting with representatives from Pakistan from February 17 to 22, the international Financial Action Task Force has advised Pakistan to keep working to curb money laundering and terror financing in order to be taken off the ‘grey list’.
“Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and Asia Pacific Group (APG) to strengthen its anti money laundering/combating financing of terrorism (AML/CFT) regime and to address its strategic counter-terrorist financing-related deficiencies, Pakistan has taken steps towards improving its AML/CFT regime, including by operationalising the integrated database for its currency declaration regime,” reads a statement issued by the FATF on Friday.
It adds that Pakistan has revised its terror financing (TF) risk assessment; however, it does not demonstrate a proper understanding of the TF risks posed by Daish, Al Qaeda, Jamaatud Dawa, Falah-i-Insaniyat Foundation, Lashkar-e-Tayyaba, Jaish-e-Mohammad, the Haqqani Network and persons affiliated with the Taliban.
To qualify for a de-listing, the FATF has recommended, “Pakistan should continue to work on implementing its action plan to address its strategic deficiencies, including by:
Pakistan is among 83 countries with a risk score of 5.0 or above. These are countries that could be loosely classified as having a significant risk of money laundering and terrorist financing, according to the Basel AML Report 2018, an independent annual ranking that assesses the risk of money laundering and terrorist financing in 129 countries.
“Money laundering and terrorist financing continue to cripple economies, distort international finances and harm citizens around the globe,” says the report, which forms its global index based on the FATF’s country evaluation reports. It estimates that the amount of money laundered worldwide ranges from $500 billion to a staggering $1 trillion.
Pakistan has been on and off the grey list in the past. The last time we were removed from the grey list was in February 2015. If the ongoing consultations between the FATF and the Pakistani government are successful, we will be taken off the grey list and placed on the white list.