To achieve global implementation of the FATF Recommendations, the FATF relies on a strong global network of FATF-Style Regional Bodies (FSRBs), in addition to its own 37 members. The nine FSRBs have an essential role in promoting the effective implementation of the FATF Recommendations by their membership and in providing expertise and input in FATF policy-making. Over 190 jurisdictions around the world have commited to the FATF Recommendations through the global network of FSRBs and FATF memberships.
FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The global financial watchdog took the decision despite Islamabad reportedly showing progress in a majority of areas identified as threats and also placing before the FATF a 26-point action plan that it will take forward over the next 15 months.
The decision was taken by the FATF Plenary that met in Paris from June 24 to 29 after reviewing the monitoring report of the International Cooperation Review Group (ICRG).
Pakistan is the ninth country to be placed on the Paris-based FATF’s ‘grey list’. The other eight being Ethiopia, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen.
The placement of Pakistan on the grey list of the FATF could hurt Pakistan’s economy as well as its international standing.
Meanwhile, the MEA on Saturday also slammed Pakistan over the presence of terrorists like 26/11 attack mastermind Hafiz Saeed and Pakistan-based terror groups.
It said that though Pakistan has “given high-level political commitment” to address global concerns on implementation of FATF standards for countering terror financing and anti-money laundering, the freedom and impunity with which designated terrorists like Hafiz Saeed and entities like Jamaat-Ud-Dawaa, Lashkar-e-Tayabba, Jaish-e-Mohammed continue to operate in Pakistan, is not in keeping with its (Pakistan’s) commitments.
“We hope that the FATF Action plan shall be complied with in a time-bound manner and credible measures would be taken by Pakistan to address global concerns related to terrorism emanating from any territory under its control,” the ministry said.