FATF Finally Removes Pakistan from Grey List

The Financial Action Task Force (FATF), a global money laundering and terrorism financing watchdog, has removed Pakistan from its grey list, meaning that it is no longer subject to increased monitoring.

Pakistan was placed on the increased monitoring list of the Financial Action Task Force (FATF), commonly known as the grey list, on June 28, 2018.

In a handout, issued after the conclusion of the FATF Plenary, FATF said that it welcomes Pakistan’s significant progress in improving its AML/CFT regime.

It noted that Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total. Pakistan is therefore no longer subject to the FATF’s increased monitoring process.

“Pakistan will continue to work with APG to further improve its AML/CFT system,” the statement said further.

After its June meeting, FATF had said that Pakistan has substantially completed its two action plans but on-site visits are required to verify the country’s implementation.

Last month, the foreign office said in a statement that FATF’s latest evaluation of Pakistan supersedes its findings in previous years. As a result of Pakistan’s strenuous and consistent efforts over the last four years, Pakistan has not only achieved a high degree of technical compliance with FATF standards it has also ensured a high level of effectiveness through the implementation of two comprehensive FATF Action Plans, and it is committed to continuing its efforts in this regard.

Pakistan was first placed on the FATF grey list after it failed to meet the international anti-money laundering (AML) and combating financing of terrorism (CFT) standards in 2008.

In 2010 Pakistan made its exit from the list after improving its AML/CFT regime. Pakistan was again placed on the grey list in 2012 and remained on the list till 2015.