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FATF retains Pakistan on grey list

The financial watchdog also warned the nation of action if it fails to show progress in combating money laundering and terror financing

By PTI in Paris
  • Published 18.10.19, 3:51 PM
  • Updated 18.10.19, 3:51 PM
  • a min read
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Pakistan was placed on the grey list by the FATF in June last year and was given a plan of action to complete by October 2019 or face the risk of being placed on the black list with Iran and North Korea. iStock

International terror financing watchdog FATF on Friday retained Pakistan on the grey list and warned the country of action for its failure in combating money laundering and terror financing, officials said.

The decision was taken after a five-day plenary of the Financial Action Task Force (FATF) held in Paris.

The FATF noted that Pakistan addressed only five out of the 27 tasks given to it for controlling funding to terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammad, responsible for series of attacks in India.

"It was again decided by consensus that FATF would retain Pakistan on the grey list and warn Pakistan that if it did not complete its full action plan and show significant and sustainable progress, action will be taken," an official privy to the development said.

Pakistan was placed on the grey list by the Paris-based watchdog in June last year and was given a plan of action to complete by October 2019 or face the risk of being placed on the Black List with Iran and North Korea.

The cut-off date for Pakistan to show improvement to Asia Pacific Group (APG), a regional body of FATF for Asia-Pacific region, was October 2018 and the Pakistani authorities insisted that they made a lot of progress during the past year.

According to APG 'Mutual Evaluation Report', out of FATF's 40 recommendations on curbing money laundering and combating the financing of terrorism, Pakistan was fully compliant only on one. It was largely compliant on nine, partially compliant on 26 and non-compliant on four recommendations, The Express Tribune reported.

"After the APG report, chances are high that Pakistan would be retained on the grey list during the FATF plenary meetings from October 13 to 18 in Paris," according to the APG report, which was published 10 days prior to the FATF pleanary meet in Paris.