New Delhi: Pakistan remains on the ‘grey list’ of the money-laundering watchdog Financial Action Task Force and has avoided the ‘black list’ for another four months, despite meeting only about half of its action plan.
The decision was announced at the end of the plenary of the FATF, chaired by China in Paris on Friday.
Pakistan was put on the ‘grey list’ in June 2018, with time given till October 2019 to implement a 27-point Action plan to address its “strategic counter-terrorist financing-related deficiencies”. At the October plenary, FATF observed that Pakistan should “swiftly complete its full action plan by February 2020”.
Four months later, the February plenary also gave a reprieve to Pakistan. In similar language, FATF “strongly urges Pakistan to swiftly complete its full action plan by June 2020”.
The FATF recognises progress made by Pakistan but is concerned about the failure to complete its action plan to reduce money laundering and terrorist financing risks. The #FATF strongly urges #Pakistan to complete its action plan. See more➡️ https://t.co/ucVnC2EbQW #FATFweek pic.twitter.com/hBU0prh9Kc
— FATF (@FATFNews) February 21, 2020
In October last year, Pakistan had implemented only about five out of the 27 points in the action plan. This has increased to 14, which is perhaps the reason that FATF also observed that Pakistan has made “recent and notable improvements”.
However, just like in October, FATF also stated that “all deadlines in the action plan have expired”.
Also read: Explained: FATF, Pakistan and the ‘Grey List’
In identical phrasing as from the last plenary, FATF also stated that if Pakistan did not make “significant and sustainable progress” by the next plenary, FATF will “take action which could include the FATF calling on its members and urging all jurisdiction to advise their FIs to give special attention to business relations and transactions with Pakistan”.
China was the first to welcome the FATF decision. It described the avoidance of ‘black list’ as a consequence of Pakistan’s “enormous efforts in improving its CTF regime, which has been recognised by the majority”.
Pakistan has made enormous efforts in improving its CTF regime, which has been recognized by the majority of FATF members at the latest plenary meeting in Paris. China & other countries will continue offering assistance to Pakistan in this area. @FATFNews
— Spokesperson发言人办公室 (@MFA_China) February 21, 2020
Pakistan getting a reprieve from the ‘black list’ was not unexpected. In the run-up to the plenary meeting this week, the US had praised Pakistan for meeting its international commitments of combating terror financing by convicting the Jamaat-ud-Daawa chief Hafiz Saeed.
So far, there has been no public response from India on Pakistan remaining on the ‘grey list’.