ISLAMABAD: The Financial Action Task Force (FATF) is likely to send its team to Pakistan for on-site inspection in September, said a report in the local media on Sunday, before removing the country from its “grey list.”

The FATF downgraded Pakistan to its increased monitoring list in June 2018, saying the country’s financial system had several vulnerabilities which could be exploited by criminal elements for money laundering and terrorism financing.

The global dirty money watchdog gave Pakistan a 34-point action plan that had to be implemented in two stages before it could be taken off the list.

Last month, the FATF president, Marcus Pleyer, praised Pakistan for making substantial progress in strengthening its financial system during a media briefing in Berlin, though he said the country would be removed from the grey list after “it successfully passes the on-site visit.”

Quoting diplomatic sources, Pakistan’s Dawn newspaper said the FATF on-site mission could take place “in the early fall.”

“Global financial crime watchdog the Financial Action Task Force (FATF) will send its on-site mission to Pakistan sometime in September, a visit anticipated by diplomatic circles in Islamabad as a ‘final walk-through from the FATF process’ for the country,” the newspaper said.

It added: “The diplomatic circles believe that Pakistan’s moving from the grey list to the white list of the FATF will help develop a new synergy and the international financial institutions will be able to help the government in overcoming economic and financial crunch.”

Pakistan’s state minister for foreign affairs Hina Rabbani Khar, who represented her country during the FATF plenary in Berlin, said last month the world community had “unanimously” acknowledged Pakistan’s efforts to strengthen its financial system.

The foreign office also mentioned the “relentless efforts” made by the country to ensure successful completion of the FATF action plan despite several challenges.

“The engagement with FATF has led to the development of a strong AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] framework in Pakistan and resulted in improving of our systems to cope with future challenges,” it added.