Related Topics: Money Laundering, Terror Financing, International Organisations
- Financial Action Task Force’s Asia Pacific Group (APG) has placed Pakistan in the Enhanced Expedited Follow-up List (Black List) for failure to meet its standards.
- In June, the FATF had warned Pakistan that its failure to complete its action plan on terror financing could possibly lead to the country getting blacklisted.
- Now, Pakistan has to focus on avoiding the blacklist in October, when the 15-month timeline ends on the FATF’s 27-point action plan.
Why Pakistan was blacklisted?
- APG of the FATF has found that Pakistan was non-compliant on 32 of the 40 compliance parameters of terror financing and money laundering.
- On 11 effectiveness parameters of terror financing and money laundering, Pakistan was adjudged as low on 10.
Who took the decision?
The APG, one of nine regional affiliates of the FATF, met in Canberra from August 18 to 23 to discuss a five-year review of the Mutual Evaluation Report (MER) for Pakistan, and decided to place it among countries requiring “enhanced, expedited follow-up”.
Impact on Pakistan
[Image Courtesy: Economic Times]
While the placing does not bring any new punitive measures on Pakistan, it will mean quarterly reporting to the group on improvement in its financial safeguards.
[Sources: The Hindu, Livemint, Economic Times]