Finally, good news for Pakistan as Islamabad has been given assurance of an on-site visit from the FATF to verify the “implementation and sustainability of the country’s money-laundering and counterterrorism financing measures” before it is formally removed from the grey list.
In its recent Berlin plenary, FATF has made its initial determination that Pakistan has substantially completed two of the action plans, complying with all 34 items. According to the watchdog: “Pakistan demonstrated that terror-financing investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups and that there is a positive upwards trend in the number of money-laundering investigations and prosecutions being pursued in Pakistan… .”
The main credit goes to the PTI government for the extensive work to simultaneously complete two challenging action plans given to it for compliance to avoid being blacklisted.
Yet it will be unfair to not give credit to the coalition government for using diplomatic channels to help the country exit the list. There are reports that China had recently been working quietly to help Islamabad on this front.
Many believe that the decision also indicates tacit US support. If true, it means that we are now closer to the restoration of the IMF bailout, even if not there yet. Once formally removed from the list, the country will see its credit rating improve, giving confidence to foreign investors.
That several actions implemented over the last four years wouldn’t have been possible without the military’s consent shows the army has remained supportive of the civilian efforts to exit the list. It is hoped that the nation’s civilian and military leadership will continue to show the highest level of political commitment to address the leftover deficiencies in the country’s AML/CFT regime, and carry on the good work to update and strengthen the relevant laws, regulations and procedures in the months and years to come.
Pakistan has been on the grey list thrice since 2008. The removal from the list will definitely help Pakistan’s economy and its trade with the world.
