FATF Grey List – Central News Hub

India reacts as Pakistan exits FATF ‘grey list’

In a statement, the FATF announced that Pakistan is no longer subject to its increased monitoring process, reports Asian Lite News

India has said that Pakistan must continue to take “credible, verifiable, irreversible and sustained” action against terrorism and terrorist financing emanating from territories under its control.

The remarks were made by Foreign Ministry spokesperson Arindam Bagchi in response to media queries on Pakistan’s removal from the grey list of the Financial Action Task Force (FATF) on Friday.

“It is in global interest that the world remains clear that Pakistan must continue to take credible, verifiable, irreversible and sustained action against terrorism and terrorist financing emanating from territories under its control,” Bagchi said in a statement.

“As a result of FATF scrutiny, Pakistan has been forced to take some action against well-known terrorists, including those involved in attacks against the entire international community in Mumbai on 26/11,” he added.

“We understand that Pakistan will continue to work with the Asia Pacific Group on Money Laundering (APG) to further improve its Anti Money Laundering (AML)/Counter Terror Financing (CFT) system,” the spokesperson further said.

India’s Ministry of External Affairs spokesperson Arindam Bagchi

In a statement, the FATF announced that Pakistan is no longer subject to its increased monitoring process.

The FATF reportedly welcomed Pakistan’s “significant progress in improving its AML/CFT (anti-money laundering & counter-terrorist financing) regime”.

Pakistan was included among jurisdictions under the increased monitoring list in June 2018 for deficiencies in its legal, financial, regulatory, investigation, prosecution, judicial and non-government sectors in fighting money laundering and combat terror financing, which are considered serious threats to global financial system.

Islamabad made high-level political commitments to address these deficiencies under a 27-point action plan. But later the number of action points was enhanced to 34.

The country had since been working with FATF and its affiliates to strengthen its legal and financial systems against money laundering and terror financing to meet international standards in line with the 40 recommendations of the FATF, Dawn reported.

Shehbaz Sharif.(photo:instagram)

A 15-member joint delegation of the FATF and its Sydney-based regional affiliate – Asia Pacific Group – had paid an onsite visit to Pakistan from August 29 to September 2 to verify the country’s compliance with the 34-point action plan committed with the FATF.

The authorities, which kept the countrywide visit of the delegation low profile, later termed it “a smooth and successful visit”. The delegation had detailed discussions with the relevant agencies pursuant to the authorisation of an onsite visit by the FATF Plenary in June 2022.

Pakistan believed that as a result of “strenuous and consistent efforts over the past four years, it has not only achieved a high degree of technical compliance with FATF standards but also ensured a high level of effectiveness through the implementation of two comprehensive FATF action plans”.

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The development came late Friday when FATF President Marcus Pleyer announced conclusion of the four-day plenary session in Berlin and announced approval of Pakistan’s performance report, adding that an onsite visit would be done before a formal announcement, reports Hamza Ameer

Pakistan is one step away from exiting the grey list of the Financial Action Task Force (FATF) as it has successfully complied with all points of the 2018 action plan items, securing approval from the global watchdog and initiating the process of onsite verification, required to officially remove the country the grey list.

FATF plenary in Berlin (Photo: Twitter@FATFNews)

“Onsite inspection by FATF in Pakistan would be done before October, and a formal announcement on Pakistan’s removal would follow,” said Pleyer.

Pakistan’s performance was praised by the FATF for implementing the organisation’s action plans, which gives clear indications towards Islamabad positive movement towards getting off the grey list.

Minister of State for Foreign Affairs Hina Rabbani Khar, who headed Pakistan’s delegation at the FATF plenary session in Berlin, said that there is no pendency of action to fulfil the demands any further.

“The 2018 action plan has been closed and no pendency of action remains on Pakistan’s part. I am pleased to announce that Pakistan has completed the entire seven-point action plan a year ahead of the given timelines”, she said.

Pakistan submitted three progress reports to the FATF regarding action plan given last year in relation to money laundering, which were reviewed in detail by the watchdog’s team.

“Consequent to the fruitful discussions held at the plenary, the FATF has decided by consensus that Pakistan has addressed all technical benchmarks and completed all action plans from 2018 and 2021.

“The development spoke volumes about the comprehensive reforms carried out in Pakistan in the anti-money laundering and counter terror- financing (AML/CFT) domain and credited the country’s sustained momentum and result of our efforts. This acknowledgment by FATF is no less than a herculean feat and a remarkable achievement,” Khar added.

The Minister said the next step of onsite visit is a procedural process, which she termed as “beginning of the end of the process that will eventually culminate in Pakistan’s exit from the grey list”, expressing hopes that this time the exit will be “hopefully forever”.

On his way to National Assembly, Prime Minister Shehbaz Sharif stops by D-Chowk to appreciate the efforts of Police, Rangers, Administration and other law enforcing agencies. (Photo: Twitter@PakPMO)

She expressed optimistic confidence that removal from the grey list and FATF’s acknowledgement would inject credibility for foreign countries in Pakistan’s economy, which would reflect in a visible boost for the investment scenario for friendly countries.

“Pakistan is now in a position to now only sustain the trajectory of reforms but also to provide guidance and technical support to other countries on the list”, said Khar.

However, with onsite visit pending, Pakistan’s failure to sail through the scrutiny of the FATF team of inspection, may result in retention of the country on the grey list, which is why, Khar emphasised all to opt for a cautious optimism and a more silent handling of the development rather than a wayward uproar, claims of credit and political debate on the matter.