PARIS: The Financial Action Task Force (FATF) said on Friday that Pakistan has taken steps towards improving its anti-money laundering and countering financing of terrorism (AML/CFT) regime.
Pakistan had been hoping to get off a “grey list” of nations with inadequate controls over such activities. While there are no direct legal implications, it brings extra scrutiny from regulators and financial institutions that can chill trade and investment.
During the meet, India had pressed for Pakistan to be kept on the terrorism financing watchlist following an attack in occupied Kashmir that was reportedly claimed by JeM.
The global body said that since June 2018, Pakistan had taken steps to improve its AML and CFT regime including operationalising the integrated database for its currency declaration regime.
The federal government has moved to ban JuD and FiF on Thursday during a high-powered National Security Committee (NSC) meeting chaired by Prime Minister Imran Khan.
FATF, however, maintained that Pakistan needed to show sanctions were being applied in cases of money laundering and terrorism financing, demonstrate better cooperation between authorities identifying illegal money flows, and enhance support for prosecutors, among other measures.