The Financial Action Task Force (FATF) has acknowledged that Pakistan has taken measures to improve its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regime. It further appreciated the recent development of the country’s Terror Financing risk assessment addendum.
However, the international watchdog emphasized that Pakistan needs to work more on the implementation of the prescribed action plan to overcome its strategic deficiencies.
The FATF pointed out ten areas where Pakistan needs to work to get itself removed from the watchdog’s graylist. It further expressed concern that Pakistan has failed to complete its action plan items within the January deadline. Moreover, the country failed to complete the prescribed action plan items that were due in May 2019 as well.
The task force has asked the country to complete its action plan by October 2019 when the last set of action plan items would expire. It admonished that if Pakistan fails to meet the deadline again, the FATF will “decide the next step at that time for insufficient progress.”
Notably, Pakistan committed in June 2018 to strengthen its AML/CFT regime to get it off from the greylist of the FATF. Since then, the government has been taking aggressive measures to fill the gaps in its regulatory and monitoring mechanism under the action plan prescribed by the watchdog.