Pakistan placed on gray list by FATF .

Financial  Action Task Force (FATF) placed Pakistan on  terrorism financing watchdog’s grey list on wednessday ,in Paris .

The sources said that the  (FATF) took this decision during a meeting in Paris, arguing that Pakistan failed to act against terror financing in Pakistan.

Caretaker governmet has  urged the FATF to remove Pakistan from its grey list.

According to earlier reports , Pakistan may get more time to take measures to implement the FATF’s anti-money laundering and terrorist financing regulations.

Pakistan has responeded as it  is putting the finishing touches to its action plan with proposed measures for combating money laundering and terror financing with  (FATF) .

A compliance report has  also been submitted by Pakistan  to the Asia-Pacific Group (APG) detailing the steps taken thus far and those that will be taken in the future to bring Pakistan’s financial, regulatory and legal landscape into compliance with the watchdog’s requirements.

On Friday, a meeting was convened at the Foreign Office to review the proposed actions which are to be discussed with APG joint working group in Bangkok next week. This was the last in a series of meetings taking place within the government as officials race to meet the June deadline by when Pakistan will be placed on the FATF grey list.

The FATF earlier sent an email to the SBP highlighting its concerns over the amnesty scheme introduced by the government in its last budget. The email points out that Pakistan is required to inform FATF before announcing any such scheme. To address their concerns, Pakistan included a provision to specify that ‘proceeds of crime are not eligible’ for the amnesty scheme.

The senior official confirmed to news agencies that the placement of Pakistan on the grey list was set to commence in June. He said the action plan drawn up by the government would set conditions for Pakistan to meet in a period of one year. The details of action plan remained under negotiation with the FATF and set to be finalised by next month, the official said.

Pakistan had been removed from the FATF grey list in February 2015 due to improved measures to combat twin menaces of money laundering and terror financing. The key point at that time was the passage of the Anti-Money Laundering Act, 2010 into law.

Mr.miftah ismayl  said Pakistan’s law to counter money laundering and terror financing was the most effective and strong legislation in the region. He said Pakistan would take all administrative measures as suggested and agreed under the proposed action plan.

However, the minister said it would be up to the FATF to remove Pakistan from the grey list or not. “It will be a political question,” he said.

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