It was reported that FATF kept Pakistan on grey list for one more year keeping in view that 26/27 of the FATF recommendations were achieved. Pakistan has, as part of its policy, aggressively built up the anti money laundering framework in Pakistan. This was announced at the FATF plenary meeting from June 21-25, in Paris.
The FATF President, Marcus Pleyer, said at the FATF’s virtual press conference from Paris, “the Pakistan GOP has made substantial progress in making its counter-terrorism financing system stronger and more effective, while largely addressing 26 out of 27 items of the action plan. However, one action item of the action plan of investigation and prosecution of senior leaders and commanders of the UN designated terror groups remains unaddressed. Pakistan has also been given a new action plan with six items including
(1) enhancing international cooperation by amending the MLA law
(2) demonstrating that assistance is being sought from foreign countries in implementing the UNSCR 1373 designations
(3) demonstrating that supervisors are conducting both on-site and off-site supervision commensurate with specific risks associated with DNFBPs, including applying appropriate sanctions where necessary
(4) demonstrating that proportionate and dissuasive sanctions are applied consistently to all legal persons and legal arrangements for non-compliance with beneficial ownership requirements
(5) demonstrating an increase in ML investigations and prosecutions and that proceeds of crime continue to be restrained and confiscated in line with Pakistan’s risk profile, including working with foreign counterparts to trace, freeze, and confiscate assets
(6) demonstrating that the DNFBPs are being monitored for compliance with proliferation financing requirements and that sanctions are being imposed for non-compliance.
The FATF President added that “FATF would closely cooperate and observe the progress and in four months’ time, and delisting will not occur before both action plans are completed and two on-site assessments have been granted and successfully completed to show that the improvements are sustainable”.
It has started to be discussed that FATF is being political in its approach, as many countries that should be on the black list are actually in the white list and are not even being questioned. At the same time, Pakistan has gone out of its way to adhere to an international standard, but still is called to do more.
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