Pakistan blacklisted by FATF, Imran Khan's sham terror crackdown fails

In a major jolt to Imran Khan,  Asia-Pacific Group of global financial watchdog Financial Action Task Force (FATF) on Friday has put Pakistan in "enhanced blacklist" for its inaction against terror funding perpetrating on its soil. This development came a day after Pakistan submitted its compliance report on its 27-point action plan to Financial Action Task Force (FATF) in hope to for a possible exit from grey list. However, APG (Asia/Pacific Group on Money Laundering) placed Pakistan in Enhanced Expedited Follow Up List (Black List) for failure to meet its standards, after FATF found Pakistan n-compliant on 32 of 40 compliance parameters on money laundering and terror financing.

" APG has placed Pakistan in Enhanced Expedited Follow Up List (Black List) for failure to meet its standards," an Indian official said in development.

READ | Pakistan submits compliance report to FATF

FATF APG Meeting

Furrmore, on 11 effectiveness parameters, Pakistan was adjudged as Low as 10.  FATF APG meeting was held in Canberra, Australia and discussions lasted over seven hours over two days. APG is regional affiliate of FATF and its decisions have a large bearing on organisation’s decisions on Pakistan. w, Pakistan has to focus on avoiding Black List in October 2019, when 15-month timeline ends on FATF's 27-point Action plan. global watchdog, earlier in June, had asked Imran Khan government to curb terror financing by October or face actions. Pakistan was asked to take action against UN-designated terrorists including Hafiz Saeed and Masood Azhar, who are operating on its soil. 

READ | Pakistan exposed: US calls out terror crackdown bluff, tells Pak to expand FATF safeguards to 'informal sectors'

What happens if Pakistan stays on greylist or is blacklisted

In a major blow to Imran Khan, if Pakistan will stay on greylist, or is blacklisted, it will be facing a financial downgrade and restrictions on its markets. It will also have a tough time managing capital inflows from IMF (International Monetary Fund) and or ncies, as well as servicing its debt that adds up to about 25% of government’s revenues at present. Imran Kahn-led Pakistan was earlier placed in grey-list by FATF after mounting pressure from US, France, Germany, UK over its lack of action against terror-funding. 

READ | US asks Pakistan to show 'visible progress' in action against terror outfits to exit FATF list

READ | Pakistan & Terrorism: 6 Freudian slips by Pak leaders on Osama, Hafiz Saeed & Masood Azhar that give it all away