Pakistan looks set for FATF white list either in February or June

Pakistan looks set to exit the Financial Action Task Force’s grey list as it complies with the FATF recommendations, however the Paris-based watchdog may link its decision to include Islamabad in its white list with an on-site visit of the group for verification of the steps taken against money laundering and terror funding, Khaleej Times has learnt.

The FATF plenary, which started is examining Pakistan’s compliance on FATF 27-point agenda on Monday, will conclude its proceedings and announce its final verdict on Thursday.

“Pakistan may have to stay in grey list until an FATF team will submit a positive report by June after its on-site visit either in April or May,” sources said.

During the last FATF plenary in October 2020, Pakistan was given an extension for full compliance with the recommendations till the next session in February. It had not fully complied with six of the 27 directives, while the other obligations were largely met.

“Islamabad is expected to remain on the FATF grey list until June, but the decision to include in white list may be linked to an onsite evaluation by an FATF team and its final submission can be used to convince the member-states that Pakistan had done enough to get its name struck off the ‘increased monitoring’ list,” sources added.

However, Pakistan diplomatic circles are confident of 100 per cent compliance with FATF regulations and expect a positive outcome this week.

“We have ensured 100 per cent compliance over the FATF’s 27-point agenda and if an on-site visit is not required then we may be included in white list on Thursday,” according to an official.

Dr Ashfaq Hassan Khan, member of the Economic Advisory Council, which is headed by Pakistani Prime Minister Imran Khan, said Pakistan has done “an outstanding job” to meet FATF conditionalities on money laundering and terror financing.

“I don’t see any justification to keep Pakistan in grey list. If the FATF decides to continue to keep Pakistan in grey list, it will be a political decision and compromise the basic purpose of Financial Action Task Force,” Khan told Khaleej Times on Tuesday.

On-site visit is important

Samiullah Tariq, head of Research and Development at Pakistan Kuwait Investment Company, said Pakistan is likely to be included in white list by June after FATF team on-site visit.

“In my view, the best outcome could be that Pakistan is able to convince the plenary to arrange an on-site visit for June and get out of the grey list then, although the country ensured compliance on all outstanding items,” Tariq told Khaleej Times on Tuesday.

“In my view, it was a long task, as there were a lot of items which involved a lot of coordination and change in mind set of some FATF members. However, convincing the global community that Pakistan has made required changes is another task and it would require a physical visit,” he added.

Action on drug financing

Dr Qais Aslam, Professor of Economics at Lahore-based University of Central Punjab, said Pakistan has done a great job in fixing laws and regulations as per FAFT procedures on money laundering.

— muzaffarrizvi@khaleejtimes.com