ISLAMABAD: The Financial Action Task Force (FATF) announced on Thursday Pakistan would continue to be on its increased monitoring list -- commonly known as the grey list -- since the country had yet to implement four out of a total of 34 action plan items to counter terrorism financing and money laundering.
The country has been on the global financial watchdog’s grey list since June 2018 and has since addressed 26 out of 27 action items. It has also addressed four of the seven action plan points assigned this year.
Islamabad is still required to move against the UN-designated terror groups and ensure confiscation of their assets to come off the grey list.
“Pakistan remains under increased monitoring,” FATF President Dr. Marcus Pleyer announced. “The Pakistan government has two concurrent action plans with a total of 34 action plan items. It has now addressed or largely addressed 30 of the items.”
Pleyer said Pakistan had been assigned a new action plan in June this year, which largely focused on money laundering deficiencies, after the FATF’s regional partner, the Asia-Pacific Group, identified a number of serious issues.
“Overall Pakistan is making good progress on this new action plan,” he said. “Four of the seven action plan items are now addressed or largely addressed. This includes showing that financial supervisors are conducting onsite and offsite checks on non-financial sector businesses and an acting legislative amendments to improve international cooperation.”
Shortly after the FATF’s announcement, Pakistan’s finance ministry said in a statement that significant work had already been carried out on the remaining items of the two action plans.
“Pakistan is fully committed to completing its both Action Plans in cooperation with FATF and its international partners,” it said.
“The high-level political commitment, which is driving its revamped AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] regime, is widely recognized by international community,” the Pakistani government said.
The FATF also acknowledged Pakistan’s progress on the implementation of June 2018 action plan, saying the country had “largely addressed” 26 out of 27 items.
“Pakistan has taken a number of important steps but needs to further demonstrate that investigations and prosecutions are being pursued against the senior leadership of UN-designated terror groups,” Pleyer said.
To a question about the international financial watchdog’s allegedly discriminatory attitude toward Pakistan, he maintained the FATF was a technical body which took its decisions with the consensus of all 39 members. He added all the decisions in the FATF were made on the basis of “technical arguments” of the members.
The Pakistani government admitted in the statement that the remaining action items in 2021 action plan included investigation and prosecution of money laundering cases along with confiscation of assets of those the UN list.
Regarding the 2018 action plan, Pakistan submitted a comprehensive progress report on the last remaining action plan item, it added.
“The FATF acknowledged Pakistan’s continued political commitment, which led to significant progress across a comprehensive CFT [Combating the Financing of Terrorism] Action Plan and encouraged Pakistan to report further progress on investigation and prosecution,” the ministry said.
The FATF will hold the next plenary in February 2022 to review Pakistan’s progress on the remaining action plan items.
