Pakistan has been on the enhanced FATF watch list since 2018; It has been at this earlier from 2008-10 and 2012-15.
Pakistan’s history with the Financial Action Task Force (FATF), an international watchdog against money laundering and terrorism financing, is a long and tale one.
This can be traced back to 2008 when the country was first placed on its enhanced watch list – the so-called “Grey List” – for allegedly failing to take adequate measures to prevent terror financing and money laundering.
When the FATF Places a Jurisdiction Under enhanced surveillanceThis means the country has committed to swiftly resolving identified strategic deficiencies within the stipulated time frame and is subject to increased monitoring. This list is often referred to externally as the “Grey List”.
Since 2008, Pakistan has been on the unwanted list twice and in 2012 and 2018. Interestingly, each time Pakistan was placed on the gray list, the country was either headed for elections or had recently completed its transition to power.
Reading: Pakistan in FATF gray list: Now what, why and why?
Here’s a look at the actions taken by the FATF in recent years to get all three gray listings of Pakistan out of it:
February 28, 2008 – Pakistan is placed After failing to meet International Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards, the FATF has been asked to work closely with the Asia Pacific Group to achieve more targets on its gray list. .
June 2010 – Pakistan exits FATF Watch List by Country”prove Progress on improving our AML/CFT regime, including creating a permanent anti-money laundering law”.
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February 16, 2012 – Pakistan is placed Again on the gray list of FATF for not fully compliant with the standards to effectively tackle the twin threats of money laundering and terrorist financing.
February 26, 2015 – FATF removed Pakistan from gray list and global watchdog Welcome Pakistan’s “significant progress in reforming its AML/CFT regime” noting that the country had established a legal and regulatory framework to meet the commitments in its action plan.
June 28, 2018 – Pakistan is placed On the gray list for the third time, with the FATF arguing that the country has failed to act against terror financing on its soil.
August 16, 2018 – Asia Pacific Group finds Faults in Pakistan’s FATF action plan after 12 days of inspection.
March 8, 2019 – banned clothing labeled As high risk to meet FATF conditions.
11 May 2019 – Pakistan Customs presented by Policy to curb the financing of terrorism.
25 July 2019 – FATF Cell establish In the Federal Board of Revenue (FBR) to tackle terror financing.
August 25, 2019 – PM Make body to help meet FATF goals.
October 18, 2019 — FATF retains Pakistan, which is on the gray list, has urged the country to expeditiously complete its entire action plan by February 2020.
October 29, 2019 — is a FATF cell Established To ensure implementation on the action plan in the Ministry of the Interior.
February 21, 2020 — FATF Pakistan holds The gray list till June, emphasized the need for further action to complete the action plan.
February 24, 2020 – FBR announcement of It will look at the real estate, jewelery business for FATF compliance.
June 24, 2020 — Virtual plenary meeting of FATF does not take Pakistan case.
August 17, 2020 – Senate adopt One of the five bills related to FATF.
August 18, 2020 – upper house of parliament passes Two more bills related to FATF
September 16, 2020 joint session of parliament passes Three bills related to FATF
October 6, 2020 The Securities and Exchange Commission (SECP) of Pakistan has fulfilled all the conditions of FATF, They say President.
October 23, 2020 – FATF found that Pakistan has successfully complied with 21 out of 27 points of action but decided to keep The country is in its ‘grey list’ till the core till February 2021 to implement this scheme.
November 19, 2020 Jamaat-ud-Dawa (JuD) chief Hafiz Saeed is convicted In another terror financing case, sentenced to 5 and a half years in prison.
Reading: Who is Hafiz Saeed and why his punishment matters
January 8, 2021 – State Bank of Pakistan (SBP) damages AML rules to comply with FATF demands.
January 8, 2021 Lahore Anti-Terrorism Court Sentence Banned organization Lashkar-e-Taiba (LeT) Zakiur Rehman Lakhvi jailed for 5 years for terror financing.
February 25, 2021 – Pakistan Ruins It is on the gray list as the watchdog claims the country failed to meet three of the 27 unfinished Action Plan targets to combat anti-money laundering and the financing of terrorism.
March 25, 2021 – government unilateral registers Directed all real estate dealers filing tax returns as Designated Non-Financial Business and Profession (DNFBP) and customers to provide complete details of their clients and property transactions after completing due diligence.
April 22, 2021 – regulator tight Trap on money laundering.
May 19, 2021 – Federal Investigation Agency (FIA) Make Special squad to check money laundering
June 25, 2021 – an incomplete action plan Pakistan holds In the gray list.
4 July 2021 – National Accountability Bureau (NAB) Make A cell to combat terrorism financing, money laundering.
August 16, 2021 – Banks have started using the ‘Politically exposed persons’ database.
October 21, 2021 – FATF says Pakistan will continue Being on the increased watch list, it was yet to fully implement the action plan given by the watchdog.
4 March 2022 — FATF retains Pakistan places its terrorism financing on the gray list and asks the country to address the remaining gaps in its financial system.
8 April 2022 – Hafiz Saeed Sentenced Imprisonment up to 33 years.
June 14-17, 2022 The global watchdog holds a four-day plenary session in Berlin, Germany. It is expected to announce the decision regarding Pakistan’s position at a press conference later today.
Header Image: A photo of a session on the second day of the plenary session of the Financial Action Task Force (FATF) from June 14 to 17. – Photo courtesy FATF Twitter