Pakistan may breathe a sigh of relief as the neighbouring nation is “one step away” from being taken off the FATF’s watchlist, which monitors money laundering, funding of terrorism, and other dangers to international financial networks.
The state minister for foreign affairs declared on Saturday that Pakistan is “one step away” from being taken off a “grey list” related to dirty money after the international watchdog suggested an on-site inspection may result in the removal of the South Asian country.
A nation that the FATF has given a “greylisting” has been subject to intensified monitoring to assess how well its anti-money laundering and anti-terror funding policies are working. The “enhanced surveillance list” is another name for the “grey list.”
Among the 23 nations on the grey list, in addition to Pakistan, are Syria, Turkey, Myanmar, the Philippines, South Sudan, Uganda, and Yemen.
Islamabad’s Efforts
On Friday, the Financial Action Task Force (FATF) maintained Pakistan on the list but warned that it might be removed from the list of nations subject to more scrutiny after a visit to assess progress in combating the funding of terrorism and money laundering.
Islamabad has substantially completed its two action plans, totalling 34 items, according to the financial crime watchdog, which the Group of Seven industrial powers established to protect the global financial system.
Islamabad is attempting to remove itself from the list where it has been since 2018.
According to the minister, Hina Rabbani Khar, Pakistan is just one step away from being removed from the “grey list,” God willing.
According to the FATF, a site visit was necessary to confirm that changes had started and were being maintained and that the required level of political commitment was still there.
Before the FATF’s next plenary in October, according to Khar, Islamabad will be preparing for the on-site inspection.
The FATF will be visiting and reviewing all the policies and laws Pakistan has put in place to combat money laundering and the funding of terrorism.
She said that Pakistan was confident it could remove itself from the list, strengthening public trust in the country’s economic system.
According to Saad Hashemy, executive director of BMA Capital Securities, leaving the grey list might boost foreign investment, particularly portfolio and direct investment.
“We didn’t only stick to the schedule. We have done better than expected, “added the minister.
I am confident we will escape this situation and never go back down this road if we continue on our current course.
Pakistan has recently made an effort to abide by all international organisations, despite the nation’s economic and political unrest.
For instance, as the IMF requested, the cost of necessities has also increased, which will have a significant long-term positive impact on the economy.
The G-7 Summit in Paris created the FATF in July 1989 with the primary goal of researching and developing countermeasures to prevent money laundering.
The FATF enlarged its mandate to include measures to prevent terrorist funding in October 2001 after the 9/11 attacks.
It also added efforts to counter the financing of the spread of weapons of mass destruction in April 2012.
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