Pakistan remains on FATF's Grey List, body demands 'effective' sanctions on terrorists

In a massive setback for Pakistan, the Financial Action Task Force (FATF) announced that the country would continue to remain on its 'Grey List' till the time it does not demonstrate 'effective implementation' of targeted financial sanctions against all its designated terrorists. The body added that Pakistan needed to complete its action plan following which the FATF would verify the implementation and sustainability of its moves. The Financial Action Task Force is said to hold its next meeting in June to re-analyze the nation's progress. 

Issuing a statement, the FATF said, "Pakistan should demonstrate effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists."

Pakistan fails to fulfill 27 action points

Earlier, Republic Media Network had learned that it was highly unlikely for Pakistan to exit the FATF's 'Grey List' until June given the fact that it had been unsuccessful in implementing 27 action points essential for its re-designation. 

During the last FATF plenary held in October 2020, Pakistan was retained on the list for failing to fulfill 6 out of 27 obligations which includes its lack of action against designated terrorists such as Jaish-e-Mohammad chief Maulana Masood Azhar and Jamaat-ud-Dawah head Hafiz Saeed.

After the last FATF meeting, FATF president Marcus Pleyer addressed a virtual press conference from Paris where he announced that Pakistan would continue to remain in the increased monitoring list or the grey list. The body has previously directed Islamabad to jot an action plan in 2019 to curb money laundering and terror financing activities, however, the deadline was extended due to the Coronavirus pandemic. Pakistan was first placed in FATF’s 'Grey List' in June 2018.

Read: 5 Pakistan terror Launchpads Within Minutes Of LoC Exposed As Imran Tries Hoodwinking FATF

Read: Pakistan's FDI Falls 27% In Seven Months Of FY2021 As FATF's Grey-listing Scares Investors

The Financial Action Task Force or FATF is an inter-governmental organization was founded in 1989 on the initiative of the G7 nations to develop policies that are required to combat money laundering. In 2001 , this goal was expanded to include terrorism financing. The FATF currently has 39 members including two regional organizations-- the European Commission and Gulf Cooperation Council. India is also a member of the FATF consultations and its Asia Pacific Group.

Read: Pakistan Likely To Remain On FATF's 'grey List' Until June, Plenary Meetings From Feb 21

Read: Nawaz Sharif Finally Cornered? In UK, Ex-Pakistan PM's Passport To Expire; Options Limited