A global anti-money laundering watchdog removed Pakistan from its “gray” monitoring list after four years, providing relief for the South Asian nation that is facing a crisis.
The Paris-based Financial Action Task Force said the country “has strengthened the effectiveness” of its regime for anti-money laundering and combating terror financing, and addressed technical deficiencies to meet the commitments of its action plans.
Pakistan has been on the FATF’s monitoring list since 2018 for its inability to combat money laundering and terror financing. It was given a 27-point plan that year and another seven-point action plan in 2021. In September of this year, the watchdog had sent a team to verify steps taken.
The exit will ease access to finances for the country after catastrophic flooding caused losses of around $40 billion to lives and livelihoods. Fitch Ratings and Moody’s Investors Service have downgraded the nation’s credit rating deeper into junk while its bonds traded in distressed territory.
FATF is an intra-governmental body that includes 37 countries and two regional organizations. China, Turkey and Malaysia have lobbied in the past to prevent severe penalties against Pakistan, while India, which accuses Islamabad of funding militant groups operating in its portion of Kashmir, had sought a downgrade to the more severe blacklist
More stories like this are available on bloomberg.com
Pakistan removed from terror-financing list after four years
A global anti-money laundering watchdog removed Pakistan from its “gray” monitoring list after four years, providing relief for the South Asian nation that is facing a crisis.
The Paris-based Financial Action Task Force said the country “has strengthened the effectiveness” of its regime for anti-money laundering and combating terror financing, and addressed technical deficiencies to meet the commitments of its action plans.
Pakistan has been on the FATF’s monitoring list since 2018 for its inability to combat money laundering and terror financing. It was given a 27-point plan that year and another seven-point action plan in 2021. In September of this year, the watchdog had sent a team to verify steps taken.
The exit will ease access to finances for the country after catastrophic flooding caused losses of around $40 billion to lives and livelihoods. Fitch Ratings and Moody’s Investors Service have downgraded the nation’s credit rating deeper into junk while its bonds traded in distressed territory.
FATF is an intra-governmental body that includes 37 countries and two regional organizations. China, Turkey and Malaysia have lobbied in the past to prevent severe penalties against Pakistan, while India, which accuses Islamabad of funding militant groups operating in its portion of Kashmir, had sought a downgrade to the more severe blacklist
More stories like this are available on bloomberg.com