— FATF acknowledges Pakistan’s progress to fully comply with its plan of action
— Govt, PTI claim credit for FATF success
ISLAMABAD: In a major breakthrough, the Financial Action Task Force (FATF) on Friday removed Pakistan from its ‘grey list’, acknowledging the country’s progress to fully comply with its plan of action.
“The FATF welcomes Pakistan’s significant progress in improving its AML/CFT regime. Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total. Pakistan is therefore no longer subject to the FATF’s increased monitoring process,” a statement issued by the FATF in Paris reads.
“Pakistan will continue to work with APG to further improve its AML/CFT system,” it added. The two-day plenary apart from other issues examined 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.
In September, a 15-member FATF team quietly visited Pakistan, a final step before the country’s exit from the grey list. The findings of the team would be discussed and reviewed in the next meeting of the FATF in its upcoming plenary session.
The FATF, in June, had hinted at Pakistan’s removal from the grey list after it concluded that Pakistan complied with the 34-point plan of action and agreed to send its team for the verification of those steps.
Pakistan was placed on the grey list by the FATF in June 2018 for ‘deficiencies in its system to curb money laundering and terror financing’. It was first given a 27-point action plan and later another 7-point plan to comply with the FATF’s standards.
The major stumbling block was the prosecution of certain UNSC designated individuals accused of terror financing. Just days before the June plenary FATF meeting in Berlin, Pakistani anti-terrorism court convicted Sajid Mir in terror financing case, something that convinced the FATF members to acknowledge Pakistan’s progress.
Pakistani officials were confident that the FATF team would give positive assessment of the country’s progress. Officials, however, cautioned that India might still use its influence to drag Pakistan’s case.
The United States is believed to have played a key role in ensuring the onsite visit for Pakistan as it expressed satisfaction with the country’s measures to curb terror financing, particularly prosecuting the certain individuals.
The exit from the FATF grey list will restore Pakistan’s image and give confidence to the foreign investors for doing ventures in the country. The grey-listing makes it hard for countries to do financial transactions and raises the cost of doing business.
Pakistan’s removal from the grey list will help give impetus to its struggling economy.
PTI, Coalition Govt claim credit for the success
Reacting to the development, the PDM government and the PTI both claimed the success.
Prime Minister Shehbaz Sharif said Pakistan exiting the FATF grey list is a vindication of the country’s determined and sustained efforts over the years.
“I would like to congratulate our civil & military leadership as well as all institutions whose hard work led to today’s success,” he wrote on his official Twitter handle while congratulating the nation.
In a follow-up tweet, the PM “particularly” commended the role and efforts of Foreign Minister Bilawal Bhutto, Army Chief General Qamar Javed Bajwa and their teams. He also felicitated “all political parties” for putting up a united front to get Pakistan out of the grey list.
“Congratulations to the people of Pakistan. Pakistan has officially been removed from the FATF ‘grey list’. Pakistan Zindabad,” said Foreign Minister Bilawal Bhutto Zardari in a tweet.
PTI leader and former federal minister for economic affairs Hammad Azhar said FATF removed Pakistan from the grey list after it reviewed steps taken by the country from October 2018 to March 2022 — the period when the PTI was in power.
“The entire nation and in particular the officers who have been involved in this process for three years deserve appreciation,” he wrote on his Twitter handle.
While congratulating the nation on the removal from the FATF grey list, Finance Minister Ishaq Dar lauded efforts of the civil-military team, saying achieving this goal under leadership of PM Shehbaz is “highly commendable”.
State Minister for Foreign Affairs Hina Rabbani Khar said exiting the grey list had been a “long and arduous journey” that was only made possible through strong political ownership across the political spectrum.
“It shows Pakistan can achieve much when we work together for Pakistan’s interest,” she wrote in a tweet.
Former PTI Minister Dr Shireen Mazari wrote,”Have some shame Imported Govt & thank PTI govt for getting country out of FATF grey list where previous PMLN govt had landed Pak. During PTI govt Opp mbrs walked out during FATF legislation bec they wanted quid pro quo of NRO! Also they heard “anti money laundering” bill & left!”
Have some shame Imported Govt & thank PTI govt for getting country out of FATF grey list where previous PMLN govt had landed Pak. During PTI govt Opp mbrs walked out during FATF legislation bec they wanted quid pro quo of NRO! Also they heard "anti money laundering" bill & left! pic.twitter.com/1WEsPIzQGH
— Shireen Mazari (@ShireenMazari1) October 21, 2022
