Paris: Pakistan was again put on the Grey List of the international terror financing watchdog Financial Action Task Force (FATF), which Friday warned Islamabad of action for its failure to combat money-laundering and terror-financing, officials said. The Paris-based FATF took the decision after its five-day plenary, which concluded here.
By making this decision public, the FATF has given notice to the global financial institutions that they need to prepare to red flag the jurisdiction and ready their systems for the eventuality in February 2020.
If Pakistan continues with the ‘Grey List’ or put in ‘Dark Grey’ list, it would be very difficult for the country to get financial aid from the IMF, the World Bank and the European Union, making its financial condition even more precarious.
The FATF Plenary here Friday noted that Pakistan addressed only five out of the 27 tasks given to it in controlling funding to terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammad, responsible for series of attacks in India.
“It was again decided by consensus that FATF would retain Pakistan on the ‘Grey List’ and warn Pakistan that if it did not complete its full action plan and show significant and sustainable progress action will be taken,” an official privy to the development said.
Such action could include calling upon global financial institutions to give special attention to business relations and transactions with Pakistan. This language is the same as used for Iran, which is already on the Black List.
“It was noted that Pak was able to address only five out of 27 items. It was unanimously decided to express serious concern with overall lack of progress in addressing its transnational terror funding risks,” the official informed.
In light of the additional fact of Pakistan’s poor performance on its mutual evaluation, chances of Pakistan exiting the Grey List in the next few years are now reduced to nil and the possibility of a formal Black Listing in February 2020 is now highly probable.
Pakistan was placed on the Grey List by the FATF in June last year and was given a plan of action to complete it by October 2019, or face the risk of being placed on the Black List with Iran and North Korea.