FATF’s Paris meeting to decide Pakistan’s grey list fate

The Financial Action Task Force – an inter-governmental body that combats money laundering, terrorist financing and threats to the international financial system – will meet in Paris for five days to decide on Pakistan’s grey list fate.

The meeting will begin on February 16.

In October 2019, the FATF had decided to keep Pakistan on its grey list till February, giving it time to implement the FATF’s 27-point action plan.

The FATF had put Pakistan on its grey list in June 2018 because of deficiencies in the country’s Anti-Money Laundering and Countering of Terrorist Financing regulations.

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.