FATF Make a Decision on Pakistan’s Fate This Week.

FATF to decide Pakistan Grey List status at Plenary Session on Oct 21.

The FATF  will examine, among other things, the assessment of an on-site team that visited Pakistan in September to verify the steps taken by the country to implement the plan of action.

A 15-member Financial Action Task Force team quietly visited Pakistan in September, the final step before the country’s removal from the grey list. The team’s findings would be discussed and reviewed at the FATF’s next meeting in its upcoming plenary session.

The positive findings of the onsite team would allow Pakistan to finally come clean about flaws in the system for combating money laundering and terrorist financing.

According to official sources, the Financial Action Task Force team, which was granted a state guest-level protocol, stayed in the country from August 29 to September 2.

The Economic Coordination Committee (ECC) approved a special grant of Rs7 million for the FATF Secretariat to provide accommodation, food, and travel for the FATF team.

The visit was kept under wraps, but sources said the FATF delegation met with relevant authorities and verified Pakistan’s efforts to meet the international financial watchdog’s requirements on money laundering and terror financing.

The FATF hinted at Pakistan’s removal from the grey list in June after concluding that Pakistan complied with the 34-point plan of action and agreeing to send a team to verify those steps.

FATF Grey List

The FATF placed Pakistan on the grey list in June 2018 due to deficiencies in its system to combat money laundering and terrorist financing. It was given a 27-point action plan at first, and then another 7-point plan to comply with (FATF) standards.

Pakistani anti-terrorism court convicted Sajid Mir in a terror financing case, convincing (FATF) members to recognize Pakistan’s progress.

Pakistani officials were confident that the FATF team would give the country a positive assessment of its progress. Officials cautioned, however, that the neighboring country could still use its influence to drag Pakistan’s case.

The US is thought to have played a key role in ensuring Pakistan’s onsite visit, expressing satisfaction with the country’s measures to combat terror financing, particularly the prosecution of specific individuals.

The removal of Pakistan from the FATF grey list will help to restore Pakistan’s image and give foreign investors confidence in doing business in the country. The grey-listing makes financial transactions difficult for countries and raises the cost of doing business.

Pakistan’s likely removal from the grey list will provide a boost to the country’s struggling economy.