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FATF to formally put Pakistan on grey-list: Here's how it will affect Pak economy
Anti-Money laundering watchdog FATF to formally put Pakistan on grey-list: Here's how it will affect Pak economy
Pakistan is set to be formally place don the grey list of the Anti-Money laundering watchdog Financial Action Task Force (FATF) during the Plenary session which begins today in Paris.
During the last plenary in February, India TV was the first to report that a decision had been taken to put Pakistan on the grey list.
In the wake of FATF Plenary meeting in Paris, Pakistan Finance Minister Shamshad Akhtar on Friday chaired a meeting in Islamabad, which was attended by Foreign Minister Abdullah Hussain Haroon and National Security Adviser Lt General (retd) Nasir Khan Janjua.
A Pakistani delegation would be also attending the FATF.
The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
According to international analysts, the grey-listing will squeeze Pakistan’s economy and make it harder for the country to meet its mounting foreign financing needs, including potential future borrowings from the International Monetary Fund. They have also argued that the grey-listing could lead to a downgrade in Pakistan’s debt ratings, making it more difficult to tap into the international bond markets.
In the past, Pakistan economy has been able to withstand such international pressure. Pakistan was on the FATF grey-list from 2012 to 2015, a period during which it successfully completed an IMF programme and raised over $5 billion from the international bond markets. During this period Pakistan’s imports and exports remained stable, evidence that the grey-listing did not raise any significant barriers to trade.
But with the growing pressure from the Trump administration to take action against the terror outfits Pakistan may not be able to wade through this sanction smoothly. The United States has already suspended assistance of over $1 billion, which included military assistance and the release of Coalition Support Funds (CSF) as Pakistan continued to entertain terror outfits like Haqqani network and 2008 Mumbai terror attack accused Hafiz Saeed's Jamaat-ul-Dawa.
With no hope of further support from the United States, the FATF grey-listing is likely to be leave Pakistan with no choice but to act against terror outfits operating from its soil in decisive manner.
https://www.indiatvnews.com/news/wo...-here-s-how-it-will-affect-pak-economy-449091
FATF meets in Paris, Pakistan’s ‘grey-list’ fate on line
https://nation.com.pk/24-Jun-2018/fatf-meets-in-paris-pakistan-s-grey-list-fate-on-line
Pakistan is expected to formally be placed on the “grey-list” of the Financial Action Task Force (FATF) during its crucial six-day meeting beginning today (Sunday) in the French capital.
The decision to place Pakistan on the global money-laundering watchdog’s ‘grey-list’ was made during a FATF plenary meeting in February this year.
Pakistan is required to submit the action plan for review during the meeting taking place from June 24 to June 29 in Paris.
Further, a FATF team is expected to visit Pakistan next month (July).
Ahead of the meeting, Pakistan took steps in keeping with FATF regulations.
On June 20, the Securities and Exchange Commission of Pakistan (SECP) issued Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018, in compliance with FATF recommendations.
The anti-money laundering and countering financing of terrorism regulations 2018 “are fully compliant with the Financial Action Task Force (FATF) recommendations, which are mandatory to adopt for Pakistan as a member of the Asia Pacific Group on Money Laundering,” SECP said in a statement.
Earlier on June 8, the National Security Committee (NSC) reaffirmed its commitment to cooperate with FATF.
“The committee reaffirmed the commitment of the country to work with FATF and other international organisations in achieving common goals and shared objectives,” a statement issued by the Prime Minister Office on the NSC meeting said.
Pakistan was also placed on the FATF grey-list list from 2012 to 2015.
FATF is a global body that combats terrorist financing and money laundering.
Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the FATF, a measure that officials fear could hurt its economy.
Anti-Money laundering watchdog FATF to formally put Pakistan on grey-list: Here's how it will affect Pak economy
Pakistan is set to be formally place don the grey list of the Anti-Money laundering watchdog Financial Action Task Force (FATF) during the Plenary session which begins today in Paris.
During the last plenary in February, India TV was the first to report that a decision had been taken to put Pakistan on the grey list.
In the wake of FATF Plenary meeting in Paris, Pakistan Finance Minister Shamshad Akhtar on Friday chaired a meeting in Islamabad, which was attended by Foreign Minister Abdullah Hussain Haroon and National Security Adviser Lt General (retd) Nasir Khan Janjua.
A Pakistani delegation would be also attending the FATF.
The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
According to international analysts, the grey-listing will squeeze Pakistan’s economy and make it harder for the country to meet its mounting foreign financing needs, including potential future borrowings from the International Monetary Fund. They have also argued that the grey-listing could lead to a downgrade in Pakistan’s debt ratings, making it more difficult to tap into the international bond markets.
In the past, Pakistan economy has been able to withstand such international pressure. Pakistan was on the FATF grey-list from 2012 to 2015, a period during which it successfully completed an IMF programme and raised over $5 billion from the international bond markets. During this period Pakistan’s imports and exports remained stable, evidence that the grey-listing did not raise any significant barriers to trade.
But with the growing pressure from the Trump administration to take action against the terror outfits Pakistan may not be able to wade through this sanction smoothly. The United States has already suspended assistance of over $1 billion, which included military assistance and the release of Coalition Support Funds (CSF) as Pakistan continued to entertain terror outfits like Haqqani network and 2008 Mumbai terror attack accused Hafiz Saeed's Jamaat-ul-Dawa.
With no hope of further support from the United States, the FATF grey-listing is likely to be leave Pakistan with no choice but to act against terror outfits operating from its soil in decisive manner.
https://www.indiatvnews.com/news/wo...-here-s-how-it-will-affect-pak-economy-449091
FATF meets in Paris, Pakistan’s ‘grey-list’ fate on line
https://nation.com.pk/24-Jun-2018/fatf-meets-in-paris-pakistan-s-grey-list-fate-on-line
Pakistan is expected to formally be placed on the “grey-list” of the Financial Action Task Force (FATF) during its crucial six-day meeting beginning today (Sunday) in the French capital.
The decision to place Pakistan on the global money-laundering watchdog’s ‘grey-list’ was made during a FATF plenary meeting in February this year.
Pakistan is required to submit the action plan for review during the meeting taking place from June 24 to June 29 in Paris.
Further, a FATF team is expected to visit Pakistan next month (July).
Ahead of the meeting, Pakistan took steps in keeping with FATF regulations.
On June 20, the Securities and Exchange Commission of Pakistan (SECP) issued Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018, in compliance with FATF recommendations.
The anti-money laundering and countering financing of terrorism regulations 2018 “are fully compliant with the Financial Action Task Force (FATF) recommendations, which are mandatory to adopt for Pakistan as a member of the Asia Pacific Group on Money Laundering,” SECP said in a statement.
Earlier on June 8, the National Security Committee (NSC) reaffirmed its commitment to cooperate with FATF.
“The committee reaffirmed the commitment of the country to work with FATF and other international organisations in achieving common goals and shared objectives,” a statement issued by the Prime Minister Office on the NSC meeting said.
Pakistan was also placed on the FATF grey-list list from 2012 to 2015.
FATF is a global body that combats terrorist financing and money laundering.
Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the FATF, a measure that officials fear could hurt its economy.
