Pakistan in the FATF Grey -list: Compliance and Policy Readjustments

Abstract

The global politics underwent a drastic shift especially after the 9/11 and Financial Action Task Force (FATF) became a lynchpin institution for monitoring counter financing of terrorism, and money laundering. It expanded its scope and power to categorize countries with weak financial institutions and urged them to comply action plan. Pakistan was put into the grey-list for slow progress regarding compliance to United Nations Security Council Resolutions (UNSCR-1617,1267 and 1373). The FATF asked Pakistan to comply 27-point Action Plan to delist from the grey-list. Pakistan adopted several concrete measures including Amendment in Anti- money laundering Act (2010), enhanced role of Federal Board of Revenue (FBR), Federal Investigation Agency (FIA), State Bank of Pakistan (SBP) and stringent measures by interior ministry of Pakistan to choke financial lifelines of terrorist networks. The paper is comprised of secondary data collected from various electronic and printed publications. The objective of the study is to highlight Pakistan’s compliance to FATF action plan. This paper highlights Pakistan’s compliance to FATF grey -list by adopting structural measures and it also provides concrete recommendations.