The Financial Action Task Force (FATF), a global financial watchdog, has removed Pakistan from its FATF’s Grey List. The decision was taken by the FATF hybrid plenary meeting, which met in Berlin and was the final one under the two-year Germany Presidency of Marcus Pleyer.
The global watchdog on terror financing made the announcement at the conclusion of its plenary meeting in French capital. It has removed Pakistan from the “grey list” after four years as it was put on it in June 2018.
One of the key topics discussed at the recent FATF plenary was the update to the jurisdictions under the Increased Monitoring list (often referred to as the FATF grey list). This is a positive move for Pakistan as it will enable the country to access loans at cheaper interest rates, as well as lower the risk of investing in the country.
In addition, the FATF plenary considered a report that will help the real estate sector to better detect and prevent money laundering and terrorist financing. This is another positive step forward for Pakistan in its efforts to combat financial crime.
Pakistan’s placement on the Financial Action Task Force’s “grey list” can be traced back to 2008. The country has allegedly failing to take adequate measures to curb terror financing and money laundering. The country was placed on the list again in 2010 and 2012.
In February 2015, the Financial Action Task Force (FATF), an intergovernmental body that sets global standards for combating money laundering and terror financing, placed Pakistan back on its radar. The country remained on the monitoring list until May 2018, when it was removed after the FATF said Pakistan had “sufficiently enhanced” its efforts to tackle terror financing.
The PTI government present the Anti-Terrorism Act of 2020, A law necessary to get Pakistan out of the FATF Grey List back then when Pakistan added to grey list but the act opposed by the current government in the Parliament of Pakistan.
