Pakistan will continue to remain on the Grey List of the Financial Action Task Force (FATF). The Paris-based body has asked the country to demonstrate “effective implementation” of targeted financial sanctions against all 1267 and 1373 designated terrorists. The decision came at the conclusion of the virtual FATF plenary held in Paris from February 22 to 25 to consider cases of various countries on the grey list, including Pakistan.
FATF had placed Pakistan on the grey list in June 2018 and asked Islamabad to implement a plan of action to curb money laundering and terror financing by the end of 2019 but the deadline was extended later on due to the COVID-19 pandemic.
“Pakistan should continue to work on implementing three remaining items in its action plan to address its strategically important deficiencies, namely by: (1) demonstrating that TF investigations and prosecutions target persons and entities acting on behalf or at the direction of the designated persons or entities. (2) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions, and (3) demonstrating effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists, specifically those acting for on their behalf,” it said.
“As all action plan deadlines have expired, the FATF strongly urges Pakistan to swiftly complete its full action plan before June 2021,” the FATF stated.