The Financial Action Task Force (FATF), the global watchdog on money laundering and terrorist financing, has decided to put Pakistan on a gray list for another four months.
The three-day meeting praised Pakistan's performance and called for further work on three of the 27 recommendations made by the agency.
Informing the decisions of the meeting in a press conference, FATF President Marcus Player said that while keeping Pakistan on the gray list, the meeting to be held in June 2021 will be reviewed.
The FATF meeting in October last year stated that Pakistan had complied with only 21 of the 27 recommendations. At the meeting, the organization decided to keep it on the gray list for the next four months, giving Pakistan until February 2021 to implement all the recommendations.
At the recent meeting, the FATF said that Pakistan needs to take further steps to curb the financing of extremists and called for effective implementation of the three points of the Action Plan in this regard.
Michael Kogelman, an analyst at the Woodrow Wilson Center, an American think tank, says Pakistan will have to take drastic steps to get out of the gray list.
The International Atomic Energy Agency (IAEA) has called on Pakistani law enforcement agencies to ensure that those involved in terrorist financing are identified and prosecuted.
The organization says it needs to ensure that those involved in financing terrorists are punished as a result of legal action.
The FATF has called on Pakistan to freeze the assets of UN-designated terrorists, prevent them from raising funds and take action against those who support them.
Earlier, the meeting, which began on February 22, reviewed the progress of the Pakistani government's anti-money laundering and counter-terrorism financing measures so far.
A delegation of experts from Pakistan's financial and law enforcement agencies, led by Federal Minister Hamad Azhar, briefed the FATF meeting on their initiatives via video link.
Pakistani officials said that the implementation of the FATF action plan was satisfactory and hoped to get out of the gray list as a result of the steps taken.
Pakistan's Federal Minister Hamad Azhar said in a tweet that Pakistan has implemented 24 of the 27 points and the FATF has acknowledged Pakistan's performance.
Last month, the FATF Joint Group Virtual Meeting urged Pakistan to complete the implementation of the Action Plan by February 2021.
FATF President Marcus Player, in response to a question about Pakistan's blacklisting, said that Islamabad was implementing the proposed measures in a better way, which he appreciated. He said that if progress on the measures proposed by the organization continued like this, it could be removed from the gray list.
The FATF President said that after the implementation of the action plan by Pakistan, the delegation of the organization would visit Islamabad to review these measures.
On the other hand, a recent think tank in Islamabad has estimated in its recent report that being on the FATF's gray list in different periods since 2008 has caused a direct loss of 38 38 billion to Pakistan's gross national product (GDP). Have to pick up
The report, based on the losses incurred by the exchange lab from 2008 to 2019, states that the Pakistani economy is facing severe difficulties due to the FATF gray list.
According to the report, the repeated inclusion of Pakistan in the gray list by the FATF has cost the economy billions of dollars, which has led to a reduction in investment, exports, trade and government spending.
According to the report, the country's economy suffered a blow of .4 13.4 billion between 2012 and 2015 and 3 10.3 billion in 2019.
According to the report, due to FATF sanctions, Pakistan's economy has suffered a potential loss of 38 38 billion in 12 years.
Remember that Pakistan was included in the FATF gray list in June 2018 and a 27-point action plan was proposed in this regard.
Pakistan assured that it would develop an effective system for the necessary legislation and implementation in the light of the points proposed by the organization.
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