FATF warns Pakistan: 'Move swiftly or face blacklisting'

FATF warns Pakistan: 'Move swiftly or face blacklisting'

HIGHLIGHTS

  • There was consensus on retaining Pakistan in FATF’s ‘grey list’.
  • It was noted that Pakistan was able to address only 5 out of 27-point FATF action plan.
  • Pakistan will have to take full action by February 2020 or face blacklisting.

PARIS: The Financial Action Task Force FATF on Friday warned Pakistan to swiftly complete its full action plan by February 2020 or face blacklisting in next plenary session.

There was consensus on retaining Pakistan in ‘grey list’ based on its poor performance on 27-point action plan, the FATF said.

The FATF noted that Pakistan addressed only five out of the 27 tasks given to it in controlling funding to terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammad, responsible for series of attacks in India.

It was unanimously decided to express serious concern with overall lack of progress in addressing its transnational terror financing risks.

“If significant and sustainable progress was not made across the full range of its action plan by next plenary in February 2020, the FATF will take action,” an official privy to the development said.

Such action could include calling upon global financial institutions to give special attention to business relations and transactions with Pakistan. This language is the same as used for Iran, which is already on the ‘black list’.

Pakistan was placed on the ‘grey list’ by the watchdog in June 2018 and was given 15 months to complete implementation of a 27-point action plan.

It should be noted that if the cash-strapped nation continues to remain in the ‘grey list’, it would become very difficult for the Imran Khan government to get financial aid from global money lenders, including the International Monetary Fund (IMF) and World Bank, further making a more precarious situation for its plunging economy.

timesofindia

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