ISLAMABAD: Pakistan’s banking system faces credit risk from the country’s continued inclusion on an international “grey list” of nations falling short of global money-laundering rules, rating agency Moody’s said on Thursday.
Global watchdog Financial Action Task Force (FATF) said last week that Pakistan would remain on the list, expressing concern it had not completed an agreed-upon action plan, and giving it until June to do so.
“The announcement is credit negative for Pakistani banks because it raises questions about potential additional restrictions relating to banks’ foreign-currency clearing services, as well as their foreign operations,” Moody’s said, adding that increased compliance costs would also hamper banks’ profitability.
Though Pakistan’s compliance with global rules had improved, Moody’s said, its weakness risked banks losing access to foreign currency-clearing services, crucial for cross-border payments used to fund imports and exports.
“This risk has so far not crystallized in the jurisdictions that have been placed on the increased monitoring list,” the agency said.
If Pakistan does not meet FATF’s requirements to curb any chances of the financial system to be used for terror financing or money laundering, it could join Iran and North Korea on the global watchdog’s blacklist.
That would lead to Pakistan being shunned by international financial institutions.
The UAE’s central bank announced this month that it was investigating whether Pakistan’s largest lender Habib Bank had violated laws against money laundering and terrorism financing.
Pakistan’s inclusion on ‘grey list’ is credit negative for banks — Moody’s
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Pakistan’s inclusion on ‘grey list’ is credit negative for banks — Moody’s
- Pakistan’s compliance with global rules had improved, Moody’s said
- FATF said last week that Pakistan would remain on the list, expressing concern it had not completed an agreed-upon action plan
US freezes immigrant visa processing for 75 countries, including Pakistan
- Immigrant visas to be suspended from Jan 21, tourist visas unaffected
- Move targets “public charge” concerns as Trump revives hard-line immigration rules
ISLAMABA: The United States will pause immigrant visa issuances for nationals of 75 countries, including Pakistan, from January 21, the State Department said on Thursday, as President Donald Trump presses ahead with a hard-line immigration agenda centered on financial self-sufficiency.
In an update published on its website, the State Department said it was conducting a comprehensive review of immigration policies to ensure that migrants from what it described as “high-risk” countries do not rely on public welfare in the United States or become a “public charge.”
“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the department said.
The pause applies specifically to immigrant visas, which are issued to people seeking permanent residence in the United States. The department said applicants from affected countries may still submit applications and attend interviews, but no immigrant visas will be issued during the suspension.
According to the State Department, the affected countries include Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil, Thailand and dozens of others across Asia, Africa, the Middle East, Europe and Latin America.
The department said tourist and other non-immigrant visas are not affected, and that no previously issued immigrant visas have been revoked. Dual nationals applying with a valid passport from a country not on the list are exempt from the pause.
The State Department did not indicate how long the visa pause would remain in effect, saying it would continue until its review of screening and vetting procedures is completed.
The announcement underscores the breadth of the Trump administration’s renewed immigration crackdown. Since returning to office last year, Trump has revived and expanded enforcement of the “public charge” provision of US immigration law, which allows authorities to deny entry to applicants deemed likely to rely on public benefits.
During his previous term, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in courts before a revised version was upheld by the Supreme Court and later rescinded under former president Joe Biden.
The visa freeze also comes amid an intensifying domestic enforcement push. US Immigration and Customs Enforcement (ICE) has expanded operations nationwide, drawing scrutiny over its tactics. Last week, an ICE agent shot and killed Renee Good, a US citizen, during a federal operation in Minneapolis, sparking protests and renewed debate over immigration enforcement under the Trump administration.
