ISLAMABAD: Pakistan will continue to stay on FATF grey list till June 2021 i.e. for another four months, for three out of 27 unmet action plan targets on anti-money laundering and combating financing terror (AML/CFT).
“Pakistan remains in the increased monitoring list (the grey list),” announced FATF President Dr Marcus Pleyer while appreciating that the country had made significant progress on all aspects of AML/CFT action plan “but severe deficiencies still remain relating” to terror financing.
“To date, Pakistan has made progress across all action plan items and has now largely addressed 24 of the 27 action items. As all action plan deadlines have expired, the FATF strongly urges Pakistan to swiftly complete its full action plan for getting out of grey list till June 2021,” said the president of Paris-based global watchdog on money laundering and terrorist financing.
In a statement, the ministry of finance said the “FATF has acknowledged the continued high-level political commitment of Pakistan to combat terrorist financing which, according to FATF statement, has led to significant progress across a comprehensive countering financing of terrorism plan”.
The FATF president said he “strongly urged Pakistan” to complete the action plan at the earliest. Responding to a question, he said only “a fully completed action plan including three outstanding areas” will be verified and then FATF members will test “its sustainability” and suggest future steps.
The FATF asked Pakistan to continue to work on implementing the three remaining items in its action plan to address its strategically important deficiencies. These include (1) demonstrating that TF investigations and prosecutions target persons and entities acting on behalf or at the directive of the designated persons or entities; (2) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions; and (3) demonstrating effective implementation of targeted financial sanctions against all 1,267 and 1,373 designated terrorists, and those acting for them or on their behalf.
The FATF noted that since June 2018, when Pakistan made a high-level political commitment to work with the FATF and the Asia Pacific Group to strengthen its AML/CFT regime and to address its strategic counterterrorist financing-related deficiencies, the country’s continued political commitment had led to significant progress across a comprehensive CFT action plan. This includes demonstration that law enforcement agencies are identifying and investigating the widest range of TF activity, demonstrating enforcement against TFS violations, and working to prevent the raising and moving of funds, including by controlling facilities and services owned or controlled by designated persons and entities.
The FATF also added four more jurisdictions to the increased monitoring list that included Burkina Faso, the Cayman Islands, Morocco and Senegal.