FATF gives Pakistan time until October to exit ‘grey list’: sources

Formal announcement to be made at the end of Paris plenary on Friday

ISLAMABAD: Pakistan is likely to stay on the “grey list” of the Financial Action Task Force (FATF), which has agreed to give Islamabad time until October to fully implement the 27-point Action Plan given by the global financial watchdog, according to sources.

The decision will be announced on Friday at the end of the FATF plenary, which is currently ongoing in the French capital of Paris.

FATF, also known by its French name Groupe d’action financiere, is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

The FATF plenary pored over a report submitted by Pakistan detailing progress on the implementation of the 27-point Action Plan, according to sources in the finance ministry.

Noting compliance on 14 points, the global financial watchdog agreed to give Pakistan more time – until October 2020 – to fully comply with the remaining 13 points, the sources told Daily Express. Until then, Pakistan will remain on the “grey list”. The decision will formally be announced on Friday.

Pakistan eyes removal from FATF grey list

The sources said that the meeting has asked Pakistan to improve prosecution and conviction in terror-financing cases. It has also called for effective legislation to curb money laundering.

The decision might come as a huge disappointment for India which has been lobbying to get Pakistan “blacklisted” by FATF. Last year, Prime Minister Imran Khan said in an interview with Al Jazeera TV that India wanted to bankrupt Pakistan and push it into the FATF blacklist.

During the ongoing Paris plenary, the Indian media, its English language television channels in particular, have been running a concerted smear campaign against Pakistan in an attempt to influence the FATF deliberations.

Islamabad has repeatedly urged the global financial watchdog to take notice of India’s relentless malicious campaign against Pakistan and its attempts to politicise the FATF proceedings.