The Financial Action Task Force (FATF) worldwide money laundering and financing watchdog has removed Pakistan from the grey list (countries under “increased monitoring”) after an effort of four years on Friday, 22 October 2022.
FATF held a meeting in Paris on 21 October 2022 for two days on Thursday & Friday. Hina Rebani Khar attended the meeting. T. Raja Kumar, President of FATF, said Pakistan had fulfilled all the commitments for action plans by addressing technical deficiencies.
Pakistan grey listed in 2018 due to strategic counter-terrorist financing-related deficiencies”. A claim of terrorism financing by the foreign community. HBL had paid $ 225 million in 2017 & NBP paid $55 million in 2022 as a fine imposed by the US regulators for violating anti-money laundering rules and compliance failures. The grey listing of Pakistan in FATF decreased the international borrowing capability. Khurram Husain business and economy journalist said Pakistan had to pay higher transaction costs due to the burden imposed on all the transactions worldwide. FATF had given a massive action plan of 27 points which raised to 34 points for the reforms to coordinate between the legislative authorities and financial institutions.
Recently, in September, FATF technical team had a successful visit to Pakistan, and it will have a conclusion on the evaluation in October. Finally, FATF has removed Pakistan from the grey list. Clean chit from the grey list of FATF will boost the reputation among the foreign community as its sovereign is downgraded by Moody’s. Removal of the grey list will help increase foreign investment and funding. It will reduce the transaction cost, as stated by Khurram Husain.
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