Most members of the Financial Action Task Force (FATF) have recognized Pakistan’s efforts to improve its counter-terrorism financing (CTF) and Money laundering. But FATF keeps Pakistan on ‘grey list’.
Pakistan has until October 2020 to improve.
– India wanted Pakistan to be blacklisted by FATF but Pakistan diplomacy was good enough to tackle this Indian diplomatic aggression as described by Prime minister Imran khan.
– In the October 2019 plenary meeting, Pakistan was declared fully compliant on 5 measures but in this session as per official report Pakistan has been declared fully compliant on 14 of 27 action items, which means half job already done. Plus, Pakistan is already partially compliant on remaining 13.
– Pakistan needed just 12 votes out of 39 to exit the ‘Grey List’ and move to ‘White List’ but it’s interesting that Turkey, Malaysia, China and Netherlands reaffirmed support for Pakistan even before the Session. While US also assured Pakistan. Moreover, with Saudi Arabia and GCC on the board it was not very difficult task but that means US have not used its influence to gather support (France, UK, Germany) for Pakistan.
Steps Taken by Pakistan (What Pakistan gained)
– Pakistan bolstered its monetary system
– Made efforts to curb money-laundering and terrorism financing
– Made efforts to enhance the tax system, bump in the foreign exchange reserves, and reduction in illegal outflow of money.
Steps to be taken by Pakistan
As per FATF report (A)
– Money laundering (illegal money or value transfer services)
– implementation of targeted financial sanction
– Prosecution of those involved in Terror financing
The good thing is that Pakistan is already working on these issues which FATF pointed out
1) In a State Bank of Pakistan report, Habib Bank of the UAE was found involved in transactions with a large-scale manipulation.
2) For the Financial sanction, Pakistan already had identified the individuals and organizations now need to freeze their assets and deny them access to funds and financial services
3) Prosecution already started, and the most important conviction is of JUD leader Hafiz Saeed, which was the most difficult task in the list.
“Don’t buy the Indian media narrative bottom line is Blacklist not even in the list.”