Matrix Report
All eyes are set on The Financial Action Task Force (FATF) as it is expected to announce whether Pakistan will exit the grey list today, 17th June 2022 or remain in the grey list, but the government is hopeful the outcome will be in the country’s favour.
The four-day plenary session began in Berlin, Germany, on Tuesday. Comprising of delegates representing 206 FATF members and observers. The outcome of the session will be announced today at 7:30 pm by FATF officials, according to the watchdog’s website.
The Pakistani delegation, attending the conference in Berlin, is headed by Minister of State for Foreign Affairs Hina Rabbani Khar, who is also the chair of the National Financial Action Task Force (FATF) Coordination Committee.
She took to Twitter and said: “The FATF plenary meetings are continuing in Berlin. FATF will issue a public statement after the conclusion of the meetings tonight. Prejudging the outcome or speculative reporting could and should be avoided.”
Pakistan has been in FATF’s grey list since June, 2018.
Below the time-line of events since FATF put Pakistan on its grey list.
In Feb 28, 2008 Pakistan was placed on the FATF grey list after it failed to meet the International Anti-Money Laundering (AML) and combating financing of terrorism (CFT) standards and is asked to work closely with the Asia Pacific Group to achieve targets.
Later in June 2010, After “demonstrating progress in upgrading its AML/CFT framework, including implementing a permanent anti-money laundering statute,” Pakistan was removed off the FATF’s monitoring list.
16 February 2012, Pakistan has been relegated to the FATF’s grey list for failing to meet the minimum requirements for effectively combatting the twin threats of money laundering and terrorism funding.
On Feb 26, 2015 FATF removed Pakistan from the grey list and welcomed Pakistan’s “significant progress in improving its AML/CFT regime” noting that the country had established the legal and regulatory framework to meet the commitments in its action plan.
Pakistan placed on the grey list for the 3rd time:
On June 28, 2018: Pakistan was placed on the grey list for the third time, with the FATF with an objection that the country had failed to act against terror financing on its soil.
Few months later on Aug 16, 2018, The Asia Pacific Group found deficiencies in Pakistan’s FATF action plan after a 12-day inspection.
In 2019, In order to meet FATF’s terms Pakistan banned outfits labelled as high risk and Pakistan Customs placed policy to eradicate terror financing.
On July 25, 2019, the Federal Board of Revenue (FBR) established a FATF cell to combat terror financing and in 25 August 2019, The Prime Minister establishes a group to assist in meeting FATF targets.
18 October 2019, Pakistan remains on the FATF’s grey list, with the organisation asking the government to fulfil its full action plan by February 2020.
In 29 October 2019, The interior ministry has established a FATF cell to guarantee that the action plan is carried out.
In Feb 2020, The FATF keeps Pakistan on its grey list until June, stressing the need for further actions for completing the action plan and FBR announced it will watch real estate, jewellery trades for FATF compliance.
June 24, 2020 — The FATF’s virtual plenary meeting does not take up Pakistan’s case.
Aug 17, 2020 — The Senate adopts one of five FATF-related bills.
Aug 18, 2020 — The upper house of parliament passes two more FATF-related bills.
Sept 16, 2020 — A joint session of Parliament passes three FATF-related bills.
Oct 6, 2020 — The Securities and Exchange Commission of Pakistan (SECP) has met all FATF conditions, says chairman.
Oct 23, 2020 — The FATF finds that Pakistan has successfully complied with 21 out of 27 points of action but decided to keep the country on its ‘grey list’ until February 2021 until the implementation on the plan to the core.
Nov 19, 2020 — Jamaatud Dawa (JuD) chief Hafiz Saeed is convicted in another terror financing case, sentenced to 5 and a half years in prison.
Jan 8, 2021 — The State Bank of Pakistan (SBP) amends AML regulations to comply with FATF demands.
Jan 8, 2021 — Lahore anti-terrorism court sentences proscribed organisation Lashkar-e-Taiba’s (LeT) Zakiur Rehman Lakhvi to 5 years imprisonment for terror financing.
Feb 25, 2021 — Pakistan remains on the grey list as the watchdog claims the country failed to complete three out of 27 unmet action plan targets on anti-money laundering and combating financing terror.
March 25, 2021 — The government unilaterally registers all tax returns-filing real estate dealers as Designated Non-Financial Business and Professions (DNFBPs) and directed them to provide full details of their clients and property transactions after completing customer due diligence.
April 22, 2021 — Regulators tighten noose on money laundering.
May 19, 2021 — The Federal Investigation Agency (FIA) sets up special squad to curb money laundering.
June 25, 2021 — A single unmet action plan keeps Pakistan on the grey list.
July 4, 2021 — The National Accountability Bureau (NAB) sets up a cell to counter terror financing, money laundering.
Aug 16, 2021 — Banks have started using ‘politically exposed persons’ database.
Oct 21, 2021 — FATF says Pakistan will continue to be on its increased monitoring list as it was yet to fully implement the action plan given by the watchdog.
March 4, 2022, The FATF retains Pakistan on its terrorism financing grey list and asks the country to address the remaining deficiencies in its financial system.
April 8, 2022, Hafiz Saeed is sentenced to 33 years in jail.
On June 14-17, 2022 The global watchdog holds a four-day plenary session in Berlin, Germany. It is expected to announce a decision regarding Pakistan’s status in a press conference later today.
Optimism fills the air today as Pakistan is expected to exit the grey list after four years. In the current economic state, Pakistan could benefit a little from the good news. As Pakistan awaits the decision, let’s hope that Pakistan breathes a sigh of relief after four years!
