ISLAMABAD: The global financial watchdog, the Financial Action Task Force, will today, Friday, conclude a three-day plenary to decide whether to keep Pakistan on a terror financing gray list or move it to a blacklist.
In 2018 the FATF placed Pakistan on its gray list of countries with inadequate controls over money laundering and terror financing, and gave it a 27-step action plan to implement.
In February, Pakistan won an extra four months, until June this year, to meet the international anti-terrorism financing norms. That deadline was extended to October due to the coronavirus pandemic.
“The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020,” the FATF had said in a statement issued after a meeting in Paris in February. “Otherwise, should significant and sustainable progress especially in prosecuting and penalizing TF (terrorism financing) not be made by the next Plenary, the FATF will take action.”
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#LISTEN: #Pakistan will not be blacklisted but there are concerns about new laws by #FATF as it will decide on Pakistan’s ‘gray list’ status today, says Michael Kugelman Deputy Director of Asia Program, Wilson Center #SouthAsia #France - Read more: https://arab.news/653s4
It said such action could include calling on its member states to order their financial institutions to give particularly rigorous attention to business relations and transactions with Pakistani clients.
Being placed on the FATF black list would put Pakistan in company with Iran and North Korea and see it shunned by international financial institutions.
Pakistan has long been accused of nurturing and supporting militant groups for use as proxies, charges Islamabad vehemently denies. But with a minimum of three votes by FATF members needed to avoid the organization’s blacklist, Pakistan has been able to avoid punishment so far with support from major ally China and other friendly countries including Malaysia and Turkey.