The war between black and grey FATF list for Pakistan is somehow ended. Pakistan escaped FATF Blacklisting i.e. Financial Action Task Force on Money laundering and Terrorism financing. This is therefore an opportunity to adjust its policies and put proper check in all the areas concerned. Now it seems Pakistan has a slim chance from being blacklisted as one of the countries that supports and fund terrorist activities. This could portray a negative effect on the country.
What is FATF?
The Financial Action Task force on money-laundering and terrorism financing is an organization created to fight the disguise on source of money, especially those gotten by ill means. It also fights the financial funding of terrorist, and other related threats to the security and integrity of international financial system. FATF has placed a severe warning to Pakistan on its activities of terrorism financing.
Why Pakistan is on Risk of FATF Blacklist? Pakistan Escaped FATF Blacklisting Till Feruary 2020
Blacklist meaning is throwing a country out of FATF perks. It has been discovered that, Pakistan is on the list of those countries who gives strong support to the activities of terrorist while also deeply involved in the funding of these activities. If the necessary proper action is not taken, FATF would have no choice but to list Pakistan among non-cooperative countries or territories which are against the global fight on Money laundering and terrorist financing. Currently, Pakistan escaped FATF Blacklisting this year and retained in Gray list.
What Pakistan Requires Removing This Threat of FATF Blacklisting?
Pakistan escaped FATF blacklisting in this year, Pakistan is strictly required to meet all the FATF’s criteria which are the standards issued to countries to fight the activities of money laundering and financing terrorism.
This directly means that, Pakistan has to adequately establish the measures to fight money laundering and financing terrorists so as to be listed among FATF’s member countries.
Pakistan escaped FATF blacklisting till February 2020, Pak needs to offer some compromises in an effort to ameliorate its cooperation on financing terrorists that has been demonstrated by the country in recent times.
Pak has not been dropped from gray-list on the FATF’S list since 2018; having been found to be lacking in essential matters on the twenty-seven measures given in order to cease its support on terrorism financing.
Consequences of FATF Blacklisting
Pakistan escaped blacklisting till, an ultimatum has therefore been given to Pakistan to completely act and adhere to the Action plans between now and February 2020. Failure to adequately act and accomplish the Action plans by then will automatically place Pakistan in FATF’s blacklist with the consequences:
- Restriction to the access of the global financial system.
- Restriction to International aid and strict supervision of all its financial transactions.
- With the ultimatum given, Pakistan needs to stand up to this challenge of making its country free of all negative activities which could damage its reputation amongst other countries; and also need to seriously commit to the Action plans developed by FATF to regulate its deficiencies.
- Pakistan needs to make adequately implement, and also make sufficient progress on accomplishing the Action plans in the quickest time possible.
Writer: Oluwaseyi Olulaye
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