The year 2018 proved out to be the worst and humiliating era for the entire nation. Due to the upsurge in money laundering, corruption, and terrorism issues, the state had to undergo the FATF Grey List. The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. It is an Independent, inter-governmental body that promotes and develops policies to protect the global financing system against money laundering, terror financing, and the financing of proliferation weapons of mass destruction. There are around 39 countries that come under FATF membership including China, India and Malaysia, and Saudia Arabia.
Falling in the Grey List was embarrassing and worrisome for the entire country. According to the sources, the terror financing watchdog took this decision during its annual plenary meeting, arguing that Pakistan had failed to act against terror financing and money laundering on its soil. However, the FATF gives Pakistan a 27 points action plan to escape the grey list. The plan includes strict measures and maneuvers to eliminate terror financing and money laundering from Pakistan
What Does It Means To Fall In to FATF Grey List?
Under Increased Monitoring. According to the information, when the FATF places a jurisdiction under increased monitoring, it means that the country has committed to resolving swiftly the identified strategic deficiencies within agreed timeframes and is agree subject to increased monitoring. The list in which they are being monitored is called the Grey List.
For Pakistan, being placed in the grey list means that the financial system of Pakistan is posing a high risk to the international financing system because of strategic deficiencies and its inability to curb terror financing and money laundering.
After being placed on the grey list, Pakistan will be directly scrutinized and scanned by the financial watchdog until it is satisfied by the measures taken by the state to prevent ML & TF. If Pakistan becomes unable to complete its task in the given time frame the chances become higher to fall into FATF Blacklist. List which is high jurisdictions subject to Call of Action. The FATF blacklists set out the countries that are considered deficient in their anti-money laundering and counter financing of terror regulatory regime
Chances for Pakistan to Escapes the Grey List
The annual plenary of FATF is held in Paris, and the talk on the performance of Pakistan to escape the grey list is due.
Due to the opacity of FATF Operation, it was uncertain that what exactly Pakistan is expected to do, but what was clear that Pakistan would have to take some serious actions this time to comply with the 27 points action plan to regain the trust of the global body. Under the direction of PM IK, the government of Pakistan has soon emerged as a competent country and showed prominent development against Money laundering and corruption. Pakistan’s effort was acclaimed by the FATF itself and decided to hold their decision to place Pakistan on a blacklist as the vast majority of the FATF member countries recognized Islamabad’s enormous efforts to improve its counter-terror financing regime.
Completed 21 Out Of 27 Tasks – 20% Progress in the Remaining 6% Tasks
Now if we talk about Pakistan’s chances then according to the reports by the Ministry of Finance, Pakistan had to compliant with 27 points to escape the FATF grey list, out of which Pakistan has largely addressed 14, with varying level of progress made on the rest of the action plan till the beginning of the year 2020, according to the global watchdog.
Eliminate Money Laundering Completely
The 13 crucial points have still been left which were needed to get addressed on time. The recent reports suggest that the country has completed its legal formalities and informed the watchdog that it had managed to comply with 21 of the points in the action plan, and succeeded in making 20% progress in the remaining six points of the action plan. This should be noted here that the 21 points it succeeds in achieving were about money laundering, the 6 remainings pertain to terror financing.
This suggests that Pakistan has succeeded in curbing money laundering completely, which they achieved by proscribing key groups and seizing their assets. Rest, the world should consider that the terror financing is not being conducted within the state but outside. Everyone knows India’s filthy paws are behind the terror financing in Pakistan and it has been proved in the recent interview of Pak NSA, Dr Moeed
No Chance To Fall In To Black List
Secondly, out of 39 countries, Pakistan wants the approval of at least 14 members of FATF to escape the grey list. Now, this could play a game-changing role, as countries like India, Israel would never want Pakistan to escape the Greylist, enmity of course. India is putting pressure on countries to vote Pakistan into a blacklist which is not possible anymore. However, there are states which are more likely to support Pakistan like Saudi Arabia China, Malaysia, etc. but you can never be too sure.
Chances – 6/10
Well to cut the long story short, if we look at the genuine chances then Pakistan has displayed greater development curbing money laundering and terror financing, and with such growth and pace it is eligible to make out of the grey list. However, chances are 6/10 because the countries involved with India are greater influence, and keeping Pakistan on the grey list would benefit them for sure. Nevertheless, wait is all we can to hear the verdict of FATF who is going to decide the Fate of Pakistan.