Pakistan removed from FATF grey list

ISLAMABAD/ WASHINGTON: Pakistan received good news on Friday when the country was removed from the Financial Action Task Force (FATF) grey list after it implemented two action plans comprising 34 points simultaneously on combating of money-laundering and terror-financing. “We welcome Pakistan to come out from the grey list of FATF for implementing 34 points action plans. Pakistan’s political leadership assured during onsite inspection team visit that they will continue undertaking required reforms to continue combating money laundering and terror financing,” FATF President T Raja Kumar said while addressing a virtual news conference from Paris at the end of a plenary meeting Friday night. Pakistan is, therefore, no longer subject to the FATF’s increased monitoring process.

A statement issued by FATF after the plenary meeting held in Paris on Friday said Pakistan would continue to work with APG [Asia/Pacific Group on Money Laundering] to further improve its Anti-Money Laundering/Combating the Financing of Terrorism [AML/CFT] regime. The FATF president also pointed out that Pakistan should now be able to sustain these reforms on the ground and would have to work to strengthen its system for it and the region’s security.

The FATF president said Pakistan made significant progress and steps were taken to supervise risks related to asset confiscation against those involved in money laundering and terror financing. He said the FATF evaluated mechanisms for combating money laundering and terror financing. He said Pakistan was placed on the grey list in June 2018 and was given the first action plan for 27 points mainly related to terror financing. He said in the second plan, Pakistan was handed over 7 points of action. Pakistan was largely found compliant on two action plans having 34 points and then an onsite inspection team visited Pakistan recently and found that the country placed mechanisms to counter terror financing and money laundering effectively.

“The country’s leadership assured the FATF that it will continue undertaking reforms to comply with the FATF requirements,” he said and added that the FATF was satisfied after onsite verification by its team recently. Pakistan, he said, showed political commitment to undertaking ongoing reforms. It requires adequate resourcing. “We have been given assurances during the onsite inspection that it will beef up work on anti-money laundering and terror financing in future as well,” he added.

The statement stated that 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. Prime Minister Shehbaz Sharif took to Twitter. “I would particularly commend the role and efforts of Foreign Minister Bilawal Bhutto Zardari, Army Chief General Qamar Javed Bajwa and their teams and all political parties for putting up a united front to get Pakistan out of the grey list. Alhumdulillah! Pakistan exiting the FATF grey list is a vindication of our determined and sustained efforts over the years.”

Foreign Minister Bilawal Bhutto Zardari also tweeted: “Congratulations to the people of Pakistan. Pakistan has officially been removed from the FATF grey list. Pakistan Zindabad!”

Meanwhile, speaking to the media live from Paris, Minister of State for Foreign Affairs Hina Rabbani Khar reacted: “Alhamdulillah, FATF has acknowledged Pakistan’s efforts of last four years and unanimously removed it from its grey list.

“This is unprecedented. Every single country including the United States supported us and said this was unprecedented work from Pakistan. We are now White Listed. “Only India, an irresponsible country, opposed us and to their disappointment could not politicise the decision.” Ms Khar spoke immediately after issuance of a statement from FATF President Raja Kumar, who announced to the media that Pakistan had made significant progress, and had done a lot of work, including addressing all 34 points of the action plan. While welcoming and acknowledging this, he said that now Pakistan was struck off the grey list.

Ms Khar said that Pakistan is now looking at FATF’s membership and is seriously considering the option. “FATF has recognised and acknowledged Pakistan’s efforts in responding successfully to all 34 action items and two action plans, while meeting all strategic deficiencies. We will be working with the Asia-Africa groups to improve at every level,” she added. Paying tributes to Pakistan’s leadership where every institution worked closely at par with international standards, she said now Pakistan has become a role model for the region and it should defiantly stay ahead. “Pakistan can do a lot and this has taught us that we can go through any adversity. Everyone did what was needed. This has shown me a learning lesson that if we work together we can achieve our goals... Credit goes to every institution,” she said.

Being back on the white list, said Ms Khar, “opens up lots of avenues for us. Pakistan will be unburdened. This is truly a good move with people now open to trade and invest easily. MashAllah it’s very good timing and we should not lose our gains. For me, it was interesting that everyone said what Pakistan had done unprecedented and with national consensus. We heard good things (at the plenary),” she added.

Ms. Khar said in absolute terms that there would be no reversing from where Pakistan is today. “Yes, there will be no reversal. You will actually see a move towards a forward journey. There will be no backsliding,” she assured. Finance Minister Ishaq Dar said: “Heartiest congratulations to the nation on removal of Pakistan’s name from the FATF grey list.” He wrote that efforts of the civil-military team under the leadership of PM Shehbaz in achieving this goal are “highly commendable”. Former economic minister and senior PTI leader Hammad Azhar gave credit to the previous PTI-led government. “From October 2018 till March 2022, Pakistan completed all action items relating to FATF dual scrutiny. Credit goes to our fantastic team of officers in Centre [and] provinces from an array of government divisions,” he wrote on Twitter. Former finance minister Shaukat Tarin took to his Twitter handle to laud the efforts of Hammad Azhar for taking Pakistan out of the FATF grey list. “Due credit should go to the establishment, Federal Board of Revenue, and State Bank of Pakistan who worked together to achieve this difficult task,” he wrote.

Meanwhile, the United States on Friday acknowledged Pakistan’s efforts in addressing FATF targets and encouraged it to continue working to strengthen AML and CFT regimes. In a statement sent to The News, a spokesperson of the State Department said that the US recognises Pakistan’s progress and efforts in addressing noted Financial Action Task Force anti-money laundering and countering terrorism financing deficiencies, which resulted in its removal from the FATF grey list. It further said that the US encourages Pakistan to continue its efforts to strengthen its Anti-Money Laundering and Counter Financing of Terrorism regimes.