ISLAMABAD: The Financial Action Task Force (FATF) decided in principle that Pakistan will remain on its gray list until next February and ordered Islamabad to take "additional measures" for the "complete" elimination of terrorism financing and money laundering.
A FATF meeting in Paris on Tuesday reviewed the measures that Islamabad has already taken to control money laundering and terrorist financing. However, the meeting noted that Islamabad will have to take additional measures in these four months.
The FATF has linked Pakistan's blacklist with unsatisfactory steps to curb money laundering and terrorist financing. The FATF will make the final decision in February 2020.
A formal announcement will be made about these developments on October 18 of this year.
The spokesman for the Ministry of Finance, Omar Hameed Khan, was contacted to verify the news, but said "it is not true and nothing before October 18".
Islamabad urged to take additional measures to avoid blacklisting
But, Paris-based correspondent of Aaj TV Younus Khan confirmed to Dawn by telephone that the FATF decided to give Pakistan an additional four-month respite to help it implement the remaining recommendations.
"My sources have confirmed to me about these developments," Khan said, adding that a formal statement will be issued on Friday, the last day of the last FATF session.
A Pakistani delegation headed by the Minister of Economic Affairs, Hammad Azhar, said at the meeting that Islamabad has made positive progress on 20 of the 27 points. The FATF expressed satisfaction with the measures taken by Pakistan and its progress in various areas.
Azhar could not be reached for an official response despite attempts.
Six days of FATF meetings will focus on disrupting financial flows linked to crimes and terrorism and discuss ways to contribute to global security.
China, Turkey and Malaysia appreciated the steps taken by Pakistan.
Meanwhile, representatives from 205 countries and jurisdictions around the world, the IMF, the UN, the World Bank and other organizations will attend the meeting.
At Tuesday's meeting, India recommended blacklisting Pakistan claiming that Islamabad has allowed Hafiz Saeed to withdraw funds from its frozen accounts.
Concerns were also raised about the tax amnesty plan offered in Pakistan.
On the direct support granted by Turkey, China and Malaysia, the FATF decided not to include Pakistan on the blacklist and give it more time to implement the remaining measures.
The decision to remain on the gray list is still considered a government success. In addition, the FATF also recognized the steps already taken by Pakistan to prevent money laundering and terrorist access to financial sources. The FATF stressed the need for further implementation of the action plan by Pakistan.
According to the FATF statute comprising 36 countries, the support of at least three countries is required to not blacklist any country.
In August 2019, the Asia-Pacific Group, a regional affiliate of the FATF, also expressed concern about Pakistan's performance due to technical failures. Islamabad is obliged to report its performance to the Group every three months.
Posted on Dawn, October 16, 2019
Source: https://www.dawn.com/news/1511090/pakistan-to-remain-on-fatf-grey-list-till-february