Pakistan’s government has agreed to take fresh steps to address money laundering and terror-financing issues, in an effort to avoid being blacklisted by Financial Action Task Force (FATF) ahead its crucial meeting next month, officials said.
Currently placed on the Paris-based FATF’S ‘grey list’, 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 further hurt its economy.
Finance Minister Asad Umar on Tuesday chaired a high-level meeting of the National Executive Committee (NEC) on anti-money laundering, where a report titled ‘Terrorism Financing Risk Assessment’ was presented.
The meeting approved the findings of report that foreign funding, drug trafficking, kidnapping for ransom, extortion, robbery and bank heists were the primary sources of terror-funding in Pakistan.
Officials said that the report was prepared as part of implementation on 27-point action plan that the FATF handed over to Pakistan as a prerequisite to exit the grey list. Out of these 27 actions agreed with the FATF, Pakistan is required to deliver on 10 points by January 2019.
Officials said that most of the task set out by the FATF have been met and others will be fulfilled before the deadline.