Pakistan has improved its ranking on the global anti-money laundering (AML) index since its exit from the Financial Action Task Force’s (FATF) grey list.
The latest update of the Basel AML Index briefing’s Expert Edition on Pakistan acknowledged the country’s progress in overall financial regulation, slightly lowering the country’s risk score.
The briefing stated, “Pakistan’s overall ML/TF [money laundering and terrorist financing] risk score in the Basel AML Index (Public Edition) is 6.16. This places it in the medium-risk category compared to other global jurisdictions. In the latest update of the Expert Edition, which is updated quarterly with the latest data, the risk score is slightly lower at 6.11″.
Pakistan is currently rated as “largely compliant” with the majority of the FATF’s 40 recommendations. The South Asian nation is only “partially compliant” in R15 (new technologies) and R38 (mutual legal assistance: freezing and confiscation).
In October 2022, the FATF removed Pakistan from its grey list after initially placing the country on the increased monitoring list on June 28th, 2018.
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.