Isolated by nations for inadequate performance, Pakistan on verge of being under ‘Dark Grey List’ by FATF

New Delhi, October 15: Tensing situation and giving a major setback, Pakistan is on the verge of being listed in the ‘Dark Grey’ list by the international terror financing watchdog FATF. The ‘Dark Grey List’ is asserted as a last warning to the country as per the indications cited in the ongoing plenary of the Financial Action Task Force (FATF) in Paris. Apparently, it is noted that the country is being isolated by all members for not doing enough.

 

An official from the FATF meeting said that Pakistan is on the verge of strong action by FATF, given its inadequate performance, whereby it managed to pass in only six of 27 items. The FATF will finalise its decision on Pakistan on October 18. According to FATF rules there is one essential stage between 'Grey' and 'Black' lists, referred to as 'Dark Grey'.

'Dark Grey' means issuance of a strong warning, so that the country concerned gets one last chance to improve, another official said. 'Dark Grey' was the term used for warning upto 3rd Phase. Now, it's just called warning -- that is the 4th phase. The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.

Pakistan was placed on the Grey List by the Paris-based watchdog in June last year and was given a plan of action to complete it by October 2019, or face the risk of being placed on the black-list with Iran and North Korea.

If Pakistan continues with the 'grey list' or put in 'Dark Grey' list, it would be very difficult for the country to get financial aid from the IMF, the World Bank and the European Union, making its financial condition more precarious.