Pakistan

Pakistan removed from the grey list by FATF after four years

Pakistan was taken off the “grey list,” also known as the “increased monitoring,” on Friday, 21st October 2022, by FATF. FATF stands for The Financial Action Task Force, an international organization that works against money laundering and the funding of terrorism. 

Following the plenary, FATF President Raja Kumar stated to the media that he addressed the topic of Pakistan’s presence on the “grey list.” It runs simultaneously on both of the tracks. All of the objectives of the action plan have been significantly advanced thanks to the substantial efforts and headway achieved by Pakistani authorities. According to him, the task force came to see Pakistan towards the end of August. According to the findings of the on-site team, the leadership in Pakistan seems to have a significant level of investment, the modifications will be maintained, and more improvements will be made.

As a direct and immediate result of these efforts, Pakistan has implemented significant reforms, which have resulted in an overall system that is far more successful in the country’s fight against the financing of terrorist organizations.

Kumar also discussed the developments that have taken place in several other domains, including the enhancement of the outcomes of asset seizure operations, the investigation and prosecution of instances of money laundering, and the enhancement of risk-based supervision of financial and non-financial entities.

As a result of this adjustment, Pakistan will no longer serve as the primary target of heightened supervision.

In its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Pakistan has allegedly achieved “significant progress,” as stated in an instructive booklet published by the Financial Action Task Force (FATF). This system aims to stop the financing of terrorist organizations.

Pakistan has strengthened its AML/CFT regime’s effectiveness and repaired technical defects to fulfill its action plans’ commitments addressing strategic weaknesses that the FATF discovered in June 2018 and June 2021. The FATF discovered these inadequacies.

The latter featured a total of 34 distinct activities, all of which were completed within the allotted time. This was done to comply with the strategic gaps action plans outlined by the FATF.

According to the report, the more stringent monitoring strategy recommended by FATF is no longer essential for Pakistan. Whatever the case may be, the government is committed to maintaining its partnership with the Asia-Pacific Group to hone its anti-money-laundering and counter-terrorism financing policies.

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