FATF retains Pakistan on ‘Grey List’, warns action if it fails to rein in terror fundinghttps://indianexpress.com/article/pakistan/fatf-retains-pakistan-on-grey-list-warns-action-if-it-fails-to-rein-in-terror-funding-6075986/

FATF retains Pakistan on ‘Grey List’, warns action if it fails to rein in terror funding

Pakistan, which was placed on the "grey list" by the watchdog in June last year, was given time till October 2019 to give a plan of action or face the risk of being placed on the blacklist with Iran and North Korea.

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By remaining on the “Grey List”, it would be difficult for Pakistan to get financial aid from the IMF, World Bank and European Union, making its financial condition more precarious. (File Photo)

Retaining Pakistan on the Grey List, international watchdog Financial Action Task Force (FATF) warned the country of action for its failure in tackling money laundering and terror financing, news agency PTI reported quoting officials.

The decision to retain Pakistan on the Grey List was taken after a five-day plenary of the FATF held in Paris. “It was again decided by consensus that FATF would retain Pakistan on the Grey List and warn Pakistan that if it did not complete its full Action Plan and show significant and sustainable progress action will be taken,” an official privy to the development was quoted as saying by PTI.

It also noted that Pakistan was able to address only five out of the 27 actionable items 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, and expressed serious concern over the lack of progress in addressing transnational terror funding risks by the country.

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“It was noted that Pak was able to address only five out of 27 items. It was unanimously decided to express serious concern with overall lack of progress in addressing its transnational terror funding risks,” the official said.

The FATF also urged Pakistan to complete its full action plan by February 2020.

In light of the additional fact of Pakistan’s poor performance on its mutual evaluation, chances of Pakistan exiting the Grey List in the next few years are now reduced to nil and the possibility of a formal Black Listing in February 2020 is now highly probable.

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In June last year, Pakistan was placed under Grey List by the Paris-based watchdog and given a plan of action to complete it by October 2019, or face the risk of being placed on the Black List with Iran and North Korea.

The FATF is an inter-governmental body established in 1989 to combat money-laundering, terrorist financing and other related threats to the integrity of the international financial system.

By remaining on the “Grey List”, it would be difficult for Pakistan to get financial aid from the IMF, World Bank and European Union, making its financial condition more precarious.