Pakistanhasfailed to complete25 of the 27 requirements demandedby theFinancial Action Task Force (FATF), international terror financing watchdog , tocurb terror funding.
FATF already warned Pakistan to take effective measuresto combat money launderingand terrorist financing else the country will be placed on the “grey” list or downgrade it to theblack list.Pakistan has been onFATF’s grey list since 2018.
In June 2018, Pakistan committed to work with the FATF to strengthen itsanti-money laundering and combating terrorist financingregimes.
Because of this failure, multilateral lenders like the IMF, the World Bank and the EU may continue downgrading Pakistan, making its financial situation more precarious. FATF has also asked Pakistan to submit the details regarding the $7 million allocated to maintain schools, madrasas, clinics and ambulances originally operated by the terror groups.
Financial Action Task Force (FATF):
FATF is aninter-governmental bodywhich devices policy and sets standards topromote effective implementation of legal,regulatory and operational measures to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The body has38 member countries,including the US, UK, India, Japan, China and France, among others.
