After 4 Years, Pakistan Is Out Of FATF’s ‘Grey List’

Pakistan got a major reprieve on Friday when the international watchdog on terror financing and money laundering, the Financial Action Task Force (FATF) agreed to remove Pakistan's name from the “grey list,” which is subjected to "strict scrutiny."

The decision was made at the end of the FATF plenary session, following a unanimous agreement by all 39 countries, including India, to accept a review of Pakistan's efforts to strengthen its anti-money laundering and counter-terror financing (AML/CFT) procedures.

Furthermore, the process has ensured that Pakistan's laws on AML/CFT are aligned with international laws and that UNSC-banned terrorists are pursued, which has resulted in the prosecution of a number of terror groups and leaders, including Lashkar-e-Hafiz Taiba's Saeed, 26/11 handler Sajid Mir, commander Zaki Ur Rahman Lakhvi and others.

While Pakistani authorities failed to imprison Jaish-e-Mohammad Chief Masood Azhar, they pursued proceedings against him and declared him "missing."

In total, the FATF said that Pakistan had completed two action plans totalling a 34-point task list since 2018.

"Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies identified by the FATF in June 2018 and June 2021, the latter of which was completed ahead of the deadlines, encompassing 34 action items in total," FATF President T. Raja Kumar said in a statement to the media.

"As a result, Pakistan is no longer subject to the FATF's heightened monitoring procedure," he added, hoping Pakistan would continue to coordinate its efforts with the FATF's Asia Pacific Group.

Pakistan's Foreign Minister Bilawal Bhutto Zardari praised the decision, saying he would "congratulate the people of Pakistan."

Myanmar, India's other neighbour has been elevated from the "grey list" to the "black list," where it will face much harsher financial restrictions and will be unable to obtain IMF, World Bank or ADB loans.