FATF exit

AFTER nearly four-and-a-half years of trials and tribulations, Pakistan has finally exited the FATF’s so-called grey list of countries. It is a victory that ought to be celebrated as an example of what it is possible for the country to achieve when the national leadership works together towards a common goal. The exit had long been awaited, with the country hoping for a reprieve after each progress review held in the last couple of years. Islamabad had been prescribed two concurrent action plans by the FATF, which tracked compliance on a total of 34 action points. It is no mean feat that the country came through on them all, even though it seemed at times that the goalposts were being shifted to put it at a disadvantage. A FATF team had, towards the end of August this year, verified Pakistan’s progress on reforming its anti-money laundering regime as well as the measures taken to block terrorism financing and found them to be satisfactory. Pakistan’s placement on the FATF’s enhanced monitoring list had been widely resented, but it has done considerable good for the country. As a result of the pressure from the international watchdog, Pakistani authorities worked together to overhaul the regulation of the domestic financial system to enhance monitoring of who has been using it and how.