Pakistan likely to stay in FATF grey list: report

Pakistan is unlikely to be excluded from the Financial Action Task Force’s (FATF) grey list over its failure to fully comply with a 27-point action plan to combat terror financing.

The Paris-based global watchdog for curbing terror financing and money laundering will hold its virtual plenary session from October 21 to 23. It will review Pakistan’s progress on the 27-point action plan.

Quoting diplomatic sources, Express Tribune reported that Pakistan has been unable to comply with six of the 27 points in the global watchdog’s action plan.

Islamabad, however, has managed to avert being blacklisted, it said, adding that Pakistan might succeed in exiting the FATF’s grey list by June next year.

The country has complied with the points related to money laundering the remaining six pertain to terrorism financing.

The International Cooperation Review Group of the FATF has acknowledged that Pakistan had complied with 21 points of the action plan.

Pakistan was placed on the grey list in June 2018 for failing to take adequate measures against money laundering and terror financing. It was then given a 27-point action plan with a warning that failing to implement it would lead to its blacklisting.

Pakistan won a three-month further extension to complete its 27-point action plan because of the coronavirus pandemic.

The deadline was June this year but the FATF extended it due to the postponement of its plenary.

The FATF is an inter-governmental policymaking body established in 1989 during the G7 summit in Paris. It works to generate political will of its member states to bring about national legislative and regulatory reforms and develop policies against money laundering.