Scorechain Review

FATF Postpones Review of Pakistan's AML/CFT Measures

FATF Extends Enhanced Monitoring

The Financial Action Task Force (FATF) announced that it will continue its enhanced monitoring of Pakistan's efforts to combat money laundering and terrorism financing. The decision was made during the FATF's plenary meeting on October 21-23, 2020.

Second 12-Month Review Scheduled

The FATF will conduct a second 12-month review by June 2021 to assess Pakistan's progress in implementing its action plan. The action plan includes measures to improve the effectiveness of Pakistan's AML/CFT regime, including strengthening customer due diligence, enhancing financial intelligence, and improving the supervision of financial institutions.

Pakistan has been on the FATF's enhanced monitoring list since June 2018. The country was given a deadline of October 2019 to implement its action plan, but was granted a one-year extension due to the COVID-19 pandemic.

The FATF also recognized the efforts of Pakistan in addressing its AML/CFT deficiencies but noted that further progress is needed. The FATF urged Pakistan to continue to implement its action plan effectively and to address the remaining deficiencies identified by the FATF.

Pakistan's Finance Minister, Asad Umar, welcomed the decision and said that the government is committed to strengthening its AML/CFT regime. He said that Pakistan is taking all necessary steps to address the FATF's concerns.