FATF Decision on Pakistan: What to Expect Next
Author: Waqas Rafiq
The Financial Action Task Force (FATF) is an intergovernmental organization that was founded in 1989 to combat money laundering and terrorist financing. On Friday, October 19th, the FATF issued a statement announcing their decision on Pakistan. This announcement has generated a lot of buzz in the news and online, with people trying to figure out what it means for Pakistan. In this blog post, we will explore what the FATF decision means for Pakistan and what to expect next.
The FATF decision means that Pakistan will remain on the organization’s “Gray List” of countries that are not doing enough to combat money laundering and terrorist financing. This is not a new development, as Pakistan has been on the Gray List since June 2018. However, the FATF had given Pakistan until October 2019 to implement a series of reforms in order to avoid being placed on the “Black List.”
The Black List would have had major implications for Pakistan, including possible financial sanctions from FATF member countries. Fortunately for Pakistan, they were able to avoid this fate by meeting certain conditions set by the FATF. These conditions included passing laws to criminalize money laundering and terrorist financing, freezing assets associated with terrorist groups, and more.
Now that Pakistan has met the FATF’s conditions, the next step is for the FATF to confirm that Pakistan has made sufficient progress in its reforms. This confirmation is expected to come at the FATF Plenary meeting in February 2020.
If Pakistan is confirmed to have made sufficient progress, it will be removed from the Gray List and will no longer be under intense scrutiny from the FATF. However, Pakistan will still need to continue implementing its reforms in order to avoid being placed back on the Gray List in the future.
The FATF’s decision on Pakistan is an important development to keep an eye on, as it could have major implications for Pakistan’s economy and stability. Stay tuned for more updates on this story. Thanks for reading!