A delegation of the Financial Action Task Force (FATF), the international organization that monitors money laundering, has arrived in Islamabad to check Pakistan’s progress in combating money laundering.
Earlier this year, Pakistan was placed in FATF’s grey list because of deficiencies in anti-money laundering and terrorist financing regulations. The organization alleged that Pakistan had bot done enough to counter terrorist financing in the country.
Amongst the 129 countries assessed for the 2018 report, Pakistan was amongst 83 countries with a risk score of 5.0 or above. Finland ranked the lowest with 2.57 points and Tajikistan with 8.30 points. The report estimated somewhere between $500 billion to $1 trillion of money being laundered worldwide.
The FATF team is in Pakistan for two weeks from October 8th-19th and has begun meetings with senior officials of finance and interior ministries. The FATF officials are also scheduled to assess Pakistan’s progress on technical compliance with anti-money laundering and counter terrorism financing standards.
Pakistan is at risk of being put on the FATF black list if it does not comply with official recommendations, which will result in strong sanctions by global financial institutions. The FATF team is likely to recommend stricter banking regulations and enforcement of legislation to counter money laundering, as well as stronger steps to prevent terrorist financing.