Today, FATF Asia Pacific group on Money Laundering (APG) on terrorism has put Pakistan in the Enhance Expidite Follow Up List (Blacklist) for its failure to meet standard.

Pakistan Blacklisted
PM Imran Khan (Credit :- Reuters)

Asia Pacific Group of Financial Action Task Force (FATF) found out that Pakistan was non-compliant in 32 out of 40 compliance parameters of terror financing and money laundering.

Financial Action Task Force (FATF) :-
The FATF is an Inter-governmental organisation, founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001 its mandate expanded to include terrorism financing.
FATF Includes 39 member countries and 9 regional body named as.
1. Asia/Pacific Group on Money Laundering (APG).
2. Caribbean Financial Action Task Force (CFATF).
3. Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).
4. Eurasian Group (EAG).
5. Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).
6. Financial Action Task Force of Latin America (GAFILAT) (formerly known as Financial Action Task Force on Money Laundering in South America (GAFISUD).
7. Inter Governmental Action Group against Money Laundering in West Africa (GIABA).
8. Middle East and North Africa Financial Action Task Force (MENAFATF).
9. Task Force on Money Laundering in Central Africa (GABAC).

Asia Pacific Group (APG):- The APG is one of the FATF regional body for Asia Pacific Region. It is an inter-governmental organisation that work on to prevent Money laundering and Terrorism funding in Asia Pacific region.
The APG was established in 1997 in Bangkok, Thailand with 13 founding members. At present, there are 41 members of APG. This organisation works to ensure that its member states adopt and implement FATF endorsed anti-money laundering and counter terrorist financing standards.

How the APG Blacklisting will affect Pakistan?
Pakistan has been in the Grey List of FATF since June 2018. Now this blacklist will badly affect Pakistan because such rankings will worsen its chances of getting loans from international credit agencies and even affect foreign investments. Pakistan is currently going through one of its worsed economic crisis.
There is a great possibility that APG decision of blacklisting Pakistan may reflect on October’s meeting of FATF. This means they might put Pakistan in blacklist on October. If FATF will blacklist Pakistan it may lead to a great setback to its economy. There is a possibility that countries like China, Turkey and Malaysia which can interefere in FATF’s decision of blacklisting Pakistan.

Aditya Raj
Writer & Co-founder of InfotOnline.

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