Pakistan 'one step away' from exiting dirty money grey list
Sign up now: Get insights on Asia's fast-moving developments
ISLAMABAD • Pakistan is "one step away" from exiting a dirty money "grey list" after a global watchdog said an on-site visit could lead to the nation's removal from it.
The Financial Action Task Force (FATF) kept Pakistan on the list on Friday but said a visit to verify progress on countering financing of terrorism and money laundering could see it removed from the list of countries under higher monitoring.
The financial crime watchdog, set up by the Group of Seven industrial powers to protect the global financial system, said Islamabad had substantially completed its two action plans, covering 34 items, as it seeks to get off the list where it has been since 2018.
"Pakistan is one step away from exiting the grey list, God willing," Minister of State for Foreign Affairs Hina Rabbani Khar told a news conference in Islamabad yesterday.
The FATF said an on-site visit was warranted to verify that reforms had begun and were being sustained, and that the necessary political commitment remained in place.
FATF president Marcus Pleyer said: "Pakistan is not being removed from the grey list. The country will be removed from the list if it successfully passes the on-site visit."
Despite the remaining hurdle, Pakistani officials reacted positively to news that the country had completed its action plan.
Ms Khar said Islamabad will be preparing for the visit before the FATF's next plenary meeting in October, adding that the watchdog will be visiting and inspecting all the measures and legislation Pakistan had implemented on money laundering and terrorism financing.
She said Pakistan was confident of getting off the list, which would help build confidence in its economic system.
Exiting the grey list could increase foreign inflows, specifically portfolio and direct investment, BMA Capital Management executive director Saad Hashemy told Reuters.
Ms Khar said: "We have not only met the timeline, we have outperformed the timeline.
"I'm very confident that if we remain on the same trajectory, we will get out of it, and will never return on this path again."
REUTERS
