Pakistan has been removed from the gray list of the Financial Action Task Force (FATF). The FATF is a global organization that monitors terrorist financing and money laundering. Pakistan was put on the gray list of FATF almost four years ago. At the same time, FATF has included Myanmar in its black list for the first time. High risk areas are kept in the black list where action is needed. India’s reaction to the FATF’s decision to exclude Pakistan from the gray list has come to the fore.
Foreign Ministry spokesperson Arindam Bagchi said, “We have seen the report related to Pakistan in the context of the plenary session of FATF. We understand that Pakistan will continue to work with the Asia Pacific Group (APG) to further improve its Anti Money Laundering (AML) or Counter Terror Financing (CFT) system on money laundering. As a result of the FATF investigation, Pakistan has been forced to take some action against well-known terrorists. It also includes those involved in the 26/11 attacks. It is in the interest of the world that Pakistan should continue to take credible and sustained action against terrorism and terrorist financing from territories under its control, he said.
The FATF issued a statement saying that it welcomes the significant progress made by Pakistan in improving its mechanisms to combat money laundering and terrorist financing. The FATF at its plenary meeting held in Paris on 20-21 October decided to remove Pakistan from the gray list.
The Global Workforce said, “Pakistan has made its mechanisms to combat money laundering and terrorist financing more effective and has addressed technical gaps to meet the commitments of its Action Plans on Strategic Deficiencies.” FATF did it in June 2018 and June 2021. It has completed the respective commitments well in advance of the stipulated time frame, which included a total of 34 action points.
“Therefore, Pakistan is no longer subject to the enhanced monitoring process of the FATF,” the FATF said. Pakistan will continue to work with APG to further improve its mechanisms to combat money laundering and terrorist financing.