PARIS – The Financial Action Task Force (FATF) stated on Friday that Pakistan will remain on the grey list, despite “substantial progress” in completing the needed action items to be removed from the list.
Pakistan has fulfilled 26 of the 27 action items in its 2018 action plan, according to the FATF.
“Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and the APG to strengthen its anti-money laundering (AML) and counter-terrorist financing (CFT) regimes and address strategic counter-terrorist financing-related deficiencies, Pakistan’s continued political commitment has resulted in significant progress across a comprehensive counter-terrorist financing action plan,” the statement read.
It goes on to say that the FATF encourages Pakistan to keep making progress toward resolving the last issue as quickly as feasible by demonstrating that TF investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups.
In June 2021, Pakistan provided a new high-level commitment to address these “strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering,” according to the international watchdog, in response to additional deficiencies later identified in Pakistan’s 2019 APG Mutual Evaluation Report (MER).
Pakistan has taken swift steps toward improving its AML/CFT regime since June 2021, completing six of the seven action items ahead of any relevant deadlines, including demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan’s risk profile.
“Pakistan should demonstrate a positive and consistent trend of pursuing complicated ML investigations and prosecutions to address the one remaining item in its 2021 action plan,” the statement added.
Pakistan is working to accomplish the remaining action plan items: Division of Finance
The FATF examined Pakistan’s progress on both action plans in its Plenary meeting, according to a statement released by the Finance Division.
“While participating in the debate on Pakistan’s progress, the FATF members recognized Pakistan’s continued commitment to sustainable, effective AML/CFT frameworks,” according to the statement.
“Pakistan effectively presented its case and reaffirmed its political commitment to continue with efforts to finish the action plans.”
“The country is making every effort to fulfill the final two elements of both action plans as soon as feasible.”
Raja Kumar of Singapore is elected as the new president by the plenary.
The Plenary formally decided this week to choose T Raja Kumar of Singapore as the FATF’s next president for a two-year term.
Member countries took this decision after a thorough process overseen by current FATF President Dr. Marcus Pleyer, according to the statement. Following consultations with all delegations, the conclusion was finalized.
“The FATF membership nominated a number of highly competent candidates, each of whom presented his or her priorities and vision for the FATF’s future,” it stated.
The FATF Plenary voted to choose Kumar as the organization’s next president as a result of this process.
Kumar will begin his duties on July 1, 2022, the day after Dr. Pleyer’s two-year presidency ends.
Pakistan was kept on the grey list by the international watchdog in October, despite “excellent progress” in fulfilling the needed action items for removal off the list.
Dr. Pleyer had stated at the time that Pakistan has two concurrent action plans totaling 34 action plan components. In October, he added, “It has now handled, or largely addressed 30 of the items.”
Since June 2018, Pakistan has been on the FATF’s heightened monitoring list, also known as the grey list.
