On-site visit to Pakistan will be the final step to exit from FATF grey list
The Financial Action Task Force (FATF) on Friday announced that its team will visit Pakistan to verify the implementation of reform measures before removing the country from the grey list.
The on-site inspection mission decision was taken by the global body during its June 14-17 plenary meeting held in Berlin, Germany.
The global money laundering and terrorist financing watchdog said that Pakistan had met all 34 items on two separate action plans which merit a visit.
FATF President Dr Marcus Pleyer acknowledged the reforms implemented by the country, saying “they are good for the stability and security of the country”.
However, he said that “Pakistan is not being removed from the grey list today. The country will be removed from the list if it successfully passes the on-site visit”. Pleyer said Pakistan will have to ensure [during the visit] that it effectively tackled money laundering and funding of militant groups.
Pakistan successfully completed all actions items
At its June 2022 Plenary, “the FATF made the initial determination that Pakistan has substantially completed its two action plans, covering 34 items,” said the statement issued by the FATF on Friday.
“Pakistan demonstrated that terror financing investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups and that there is a positive upwards trend in the number of money laundering investigations and prosecutions being pursued in Pakistan, in line with Pakistan’s risk profile,” said the statement issued by the FATF.
The FATF did not give a date of the visit and said it will be conducted at the earliest possible date.
Final step
Pakistan’s Ministry of Foreign Affairs said that “FATF has acknowledged the completion of Pakistan’s both Action Plans (2018 and 2021) and has authorized an onsite visit to Pakistan, as a final step to exit from the FATF’s grey list.”
The FATF members while participating in the discussion on Pakistan’s progress, congratulated Pakistan for completing both Action Plans covering 34 items, and especially on the early completion of the 2021 Action Plan in a record timeframe, the Pakistani official said.
Pakistan continued its relentless efforts toward the successful completion of these Action Plans despite many challenges including the COVID 19 pandemic.
Process of removal from FATF list
In order to be removed from FATF monitoring, a country must address all or nearly all the components of its action plan. Once the FATF acknowledges the reforms, it will organize an on-site visit to confirm that the implementation of the necessary legal, regulatory, and/or operational reforms is underway and there is the necessary political commitment and institutional capacity to sustain implementation.
If the on-site visit has a positive outcome, the FATF will decide on removing the jurisdiction from public identification at the next FATF plenary.