Thread by @baba_taahir

Why Pakistan on FATF’s grey list? A Thread

FATF Gray list means jurisdictions with strategic deficiencies in their local legislation to curb money laundering(AML) and terrorist financing(CTF).
In June 2018, Pak was moved to FATF’s gray list.

Major reasoning was Pakistan’s “structural deficiencies in AML & CFT. This was not the first time Pakistan has found itself on one of FATF’s list of not-so-good guys; the country was there in 2008 and from 2012 to 2015. As the result of June 2018 gray list, Pakistan was given 15

months to implement an action plan to be able to negotiate an exit from the grey list. The actions Pakistan is being asked to take to exit the list:
A) terrorism financing risks are properly identified, assessed,
B) remedial actions and sanctions are applied on ACL&CTF

C)competent authorities are coordinating to identify and take enforcement action against illegal money or value transfer services;
D)authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers

being used for financing of terrorism;
E) improving inter-agency coordination including between provincial and federal authorities on combating financing of terrorism risks;
F)law enforcement agencies are identifying & investigating financing of terrorism and prosecuting related

designated persons and entities;
G)financing of terrorism prosecutions result in applicable sanctions and enhancing the capacity and support for prosecutors and the judiciary;
H)effective implementation of targeted financial sanction against all designated terrorists;

I)enforcement against financing of terrorism violations including administrative and criminal penalties and authorities cooperating on enforcement cases; and
J) facilities and services owned or controlled by designated persons are deprived of their resources.

How to get out of gray list?

Over the last two years, Pakistan has made progress by fulfilling fourteen of the criteria required by the FATF, such as developing an integrated database at airports for enhanced coordination across financial, administrative, and law enforcement

agencies, and establishing successful outreach and regulatory safeguards aimed at countering terrorist financing within the country’s financial sector. Further, to comply with FATF requirements Pakistan need to Amend AML & ICT Waqf bills.

Pakistan’s status on the FATF grey list

inevitably impacting our ability to attract foreign investors. Generally, Pakistan’s grey list status also impacted imports, exports, remittances, and its ability to borrow money from international lenders, such as the IMF and the ADB.

Digital offerings require mechanisms that support fraud protection, AML*CTF efforts. Idea of digital economy which rely on online payment systems and online money transfers has been badly effected because platform like PayPal are hesitant to invest in Pak due its FATF grey list.

What If Pakistan sent to Black List?

Pakistan would be seen as Country
a) supporting terror funding and money laundering activities
b)Not willing to Improve deficiencies
c)High default and fraud risk jurisdiction for international investors
d)sanctions on Export/Import

e) Tariffs on imported goods
f)Quotas on imports and exports
g) Non-tariff barriers, such as licensing or packaging
h) requirements or standards for imports
I) Asset freezes on goods and funds.
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Despite deficiencies , Pakistan’s placement on FATF’s grey list is far more

political than financial in nature. Pakistan enemies want to use FATF to pressurized Pakistan to accept the authority of fascists' hindu and israeli regime. Local Opposition is acting as tool to serve the agenda of enemies.