The Paris-based group's deadline has already been missed twice
The FATF has given Pakistan another four months to improve its “counter-terrorist financing” operations in accordance with the agreed plan.
In a statement on its website, the FATF expressed concern that “not only did Pakistan fail to complete its action plan items by January deadline; it also failed to complete its action plan items due May, 2019”.
“The FATF strongly urges Pakistan to swiftly complete its action plan by October, 2019 when the last set of action plan items are set to expire,” the FATF statement said. “Otherwise, the FATF will decide the next step at that time for insufficient progress.”
Based out of Paris, the FATF is an inter-governmental body that combats money laundering, terrorist financing and threats to the international financial system. It put Pakistan on its grey list in June 2017 because of deficiencies in the country’s Anti-Money Laundering (AML) and Countering of Terrorist Financing (CTF) regulations.
Pakistan was told to block financial loopholes, terror financing and money laundering by implementing the 27-point action plan.
Being on the grey list doesn’t come with any sanctions, but if we remain on this list, we face the risk of being put on the black list. This is where it gets problematic.
Being on the black list means our banking system will be regarded as one with poor controls over AML and CFT standards — forget bringing PayPal to Pakistan, expatriates will find it difficult to send remittances and traders’ cost of business will increase because our banks will face higher scrutiny in international payments and foreign banks might not even do business with Pakistani banks. The government, too, will struggle to raise funds from international markets if we are placed on the black list.