Pakistan remains on FATF’s Grey list

March 05, 2022 (MLN): Pakistan remained on the grey list of the Financial Action Task Force (FATF) despite the fact that Pakistan had fulfilled the anti-money laundering watchdog's maximum technical requirements.

The Financial Action Task Force (FATF) reviewed Pakistan’s progress on both FATF Action Plans in its Plenary meeting held on 4th March 2022. The FATF members while participating in discussion on Pakistan’s progress, recognized Pakistan’s continuing commitment to a sustainable/robust AML/CFT frameworks. Pakistan presented its case in an effective manner and also reaffirmed its political commitment to continue with the efforts to complete the Action Plans.

With regard to the 2018 Action Plan, Pakistan has already completed 26 of the 27 Action Plan items while there was recognition by FATF that Pakistan had made significant progress towards addressing the last remaining action item. The FATF encouraged Pakistan to continue to make progress to address, as soon as possible, the one remaining item by continuing to demonstrate that TF investigations and prosecutions are completed against the specified individuals. 

 With regard to 2021 Action Plan, Pakistan has made swift progress. In just two plenary cycles, Pakistan has completed 6 of the 7 action items. During the current plenary cycle, Pakistan has completed two more action plan items. The action items that have been completed during February 2022 Plenary cycle, include UN designations and restraining & confiscating proceeds of crime in line with Pakistan’s risk profile. The remaining one action item includes investigations and prosecutions of money laundering cases in line with Pakistan’s risk profile, on which major work has already been completed and acknowledged by the FATF.

 Pakistan is making endeavors to complete the last two remaining items of both the action plans, as early as possible. 

 The FATF Plenary meetings were held in hybrid format from 1-4 March 2022. The Pakistan delegation attended this meeting virtually. Pakistan’s delegation was led by Mr. Muhammad Hammad Azhar, Federal Minister for Energy / Chairman National FATF Coordination Committee.

The Government of Pakistan reiterates its commitment to take all necessary measures to ensure completion of remaining two Action Plan items during the upcoming FATF plenary cycle, to become eligible for exiting from FATF’s Grey list.

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