ISLAMABAD: The Financial Action Task Force (FATF), a global money-laundering and terror financing watchdog, published the results of Pakistan’s Second Mutual Evaluation Follow-up Report earlier this month, saying that the country had achieved compliant or largely compliant rating in 31 out of 40 recommendations to strengthen its financial system.
“Pakistan has made notable progress in addressing the technical compliance deficiencies identified in its MER [mutual evaluation report] and has been re-rated on 22 Recommendations,” the latest FATF document on the country’s progress says in its conclusion.
According to the head of the Pakistan’s FATF taskforce Hammad Azhar, the pace of the country’s progress in terms of its compliance with the international financial standards remains unprecedented in the global financial watchdog’s history.
Pak has achieved compliant rating in 31 out of 40 FATF recommendations (MER technical compliance). This is the parallel scrutiny being undertaken at FATF besides our current action plan.
Upgrade of 20 criteria in less than 2 years is unprecedented in FATF history for any country.
— Hammad Azhar (@Hammad_Azhar) June 4, 2021
The country’s finance ministry also maintained on Friday that the FATF results proved Pakistan’s sincerity and resolve to comply with the global watchdog’s requirements.
“These results are also a manifestation of the irreversibility and sustainability of the complete process in bringing Pakistan at par with Global AML/CFT [Anti-Money Laundering/Counter Financing of Terrorism] standards,” it said in an official statement.
Pakistan was placed on FATF’s gray list of countries with inadequate control over curbing money laundering and terrorism financing in 2018.
The country managed to avoid being blacklisted due to the diplomatic support of friendly nations like China.
However, the global financial watchdog still requires it to do more before fully endorsing the strength of its financial system and recognizing that it can no longer be manipulated by criminal elements.