The investigative approach

THE FATF has placed Pakistan on its ‘increased monitoring list’, also known as the ‘grey list’, multiple times since 2008. Those countries whose names appear on this list commit to actively working with the FATF to address strategic deficiencies in their regulatory frameworks to combat money laundering, terrorist financing, and proliferation financing. In its announcement on Oct 21, the FATF stated that “Pakistan has strengthened the effectiveness of its [anti money laundering/ combating the financing of terrorism] regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total”. Therefore, it said, “Pakistan is no longer subject to the FATF’s increased monitoring process”. From a technical standpoint, Pakistan has completed the tasks assigned to it. However, its most pressing challenge now is to remain off the list in the future as well; to achieve this, Pakistan must continue to strengthen regulatory and administrative frameworks with regard to anti-money laundering and counterterrorism financing in a credible and sustained manner.