ISLAMABAD: The Financial Action Task Force (FATF) said on Friday that Pakistan had addressed all of its 34 action items, but stopped short of removing the South Asian nation from its “grey list,” saying it would be done after the country passes an on-site inspection. 

In June 2018, the FATF downgraded Pakistan to its increased monitoring list for lacking measures to curb money-laundering and terrorism financing. 

The international financial crime monitoring group had handed Pakistan a 34-point action plan to fulfil in two stages to get off the list. In March, it said Islamabad had already met 32 points through effective legislation. 

“I’m glad to say that they [Pakistan] have now largely addressed all 34 action items from their combined two action plans,” FATF President Marcus Pleyer said in a media briefing at the conclusion of the four-day plenary in Berlin, Germany. 

“Pakistan is not being removed from grey list today. The country will be removed from the list if it successfully passes the on-site visit.” 

Expectations were high in Pakistan that FATF would announce its removal from the list on Friday, but Pleyer instead said an onsite inspection by FATF in Pakistan would take place before October, and that a formal announcement on Pakistan’s removal would follow. 

Pleyer said FATF was praising Pakistan for implementing the organization’s action plans — a clear indication that Pakistan was moving closer to getting off the “grey list.” 

Pakistan had launched a massive diplomatic effort to get off the grey list. State Minister for Foreign Affairs Hina Rabbani Khar, who is also the chair of Pakistan’s National FATF Coordination Committee, led the Pakistan side at the Berlin meeting. 

Shortly after the FATF’s announcement, the minister congratulated Pakistanis and said the international community had “unanimously” acknowledged the country’s efforts. 

“Our success is the result of four years of a challenging journey,” Khar said on Twitter. “Pakistan reaffirms resolve to continue the momentum and give our economy a boost.” 

Pakistan’s Foreign Office said the watchdog has acknowledged the completion of its 2018 and 2021 action plans by Islamabad, and has authorized an onsite visit in Pakistan as a final step to exit from the “grey list.” 

“Pakistan continued its relentless efforts toward successful completion of these Action Plans despite many challenges including the COVID 19 pandemic,” it said in a statement. 

The foreign office said Pakistan had covered a lot of ground in the anti-money laundering/combating the financing of terrorism (AML/CFT) domain during implementation of the FATF action plans. 

“The engagement with FATF has led to the development of a strong AML/CFT framework in Pakistan and resulted in improving of our systems to cope with future challenges,” it added.