FATF retains Pakistan on grey list

Pakistan achieves significant progress on technical compliance on FATF recommendations


Islamabad: Pakistan has made significant progress in the technical compliance recommended by the Financial Action Task Force (FATF).

According to a press release issued by the Ministry of Finance on Friday, the Asia Pacific Money Laundering Group (APG) has announced the results of Pakistan’s Third Mutual Evaluation Follow-up Report (MER) on August 12.

According to the report, Pakistan received a compliance/basic compliance rating among the other 4 recommendations, resulting in a total of 35/40 recommendations being rated as compliant (C) or basic compliance (LC).

Pakistan now ranks among the top countries with more than 35 C/LC ratings out of 40 FATF recommendations.

In addition, Pakistan has also received a high compliance/compliance rating in all six FATF recommendations, including R.3 (money laundering crime), R.5 (terrorist financing crime), and R.6 (and financial sanctions). Related targeted financial sanctions). Terrorism and terrorist financing), R.10 (customer due diligence), R.11 (record keeping) and R.20 (suspicious transaction reporting).

The Pakistan Financial Supervisory Group (FMU) led the entire process of the Pakistan Mutual Evaluation Cycle and defended the rating during the discussions of the APG Mutual Evaluation Committee.

After this upgrade, compared with many countries, Pakistan is in an advantageous position in terms of technical compliance.

For example, if you compare Pakistan’s ranking with the G20 countries, Pakistan ranks fourth after Italy (38), Saudi Arabia (38) and the United Kingdom (38).

Pakistan will continue to maintain this momentum to resolve the remaining gaps identified in the 2019 Mutual Evaluation Report, and will seek to upgrade the remaining 5 recommendations in the fourth follow-up report. Pakistan’s MER was passed in August 2019, and Pakistan was rated as compliant in 10 of the 40 FATF technical compliance recommendations and mainly complaints.

Pakistan has carried out major legal reforms and promulgated 17 laws and related rules and regulations.

These laws not only strengthened Pakistan’s system, but also brought sustainability.

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