Bloomberg
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Pakistan added in 2018 for shortcomings on illicit money
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Congo, Tanzania and Mozambique removed from ‘gray’ list
Photographer: Ishara S. Kodikara/AFP/Getty Images
A global anti-money laundering watchdog removed Pakistan from its “gray” monitoring list after four years, providing relief for the South Asian nation that is facing a crisis.
The Paris-based Financial Action Task Force said the country “has strengthened the effectiveness” of its regime for anti-money laundering and combating terror financing, and addressed technical deficiencies to meet the commitments of its action plans.
Pakistan has been on the FATF’s monitoring list since 2018 for its inability to combat money laundering and terror financing. It was given a 27-point plan that year and another seven-point action plan in 2021. In September of this year, the watchdog had sent a team to verify steps taken.
Access to Finance
The exit will ease access to finance for the country after catastrophic flooding caused losses of around $40 billion to lives and livelihoods. Fitch Ratings and Moody’s Investors Service have downgraded the nation’s credit rating deeper into junk while its bonds traded in distressed territory.
In several decisions on Friday, FATF added Myanmar to the high-risk group — known as the ‘black’ list — citing the country’s failure to make enough progress in addressing illicit financial flows.
Read more: Myanmar Put on FATF’s ‘Black List’ Over Money Laundering Risks
Like Pakistan, Nicaragua was removed from the gray list after taking steps to improve systems and risk-based supervision.
The FATF also added the Democratic Republic of Congo, Tanzania and Mozambique to the gray list following evaluations.
“All countries have agreed to action plans to address these deficiencies,” Kumar said. “I urge all of them to complete those action plans as soon as possible.”
The FATF kept the United Arab Emirates on its gray list. The Gulf state has come under increased scrutiny since the designation in March, emerging as a haven for wealthy Russians following the invasion of Ukraine. That’s frustrated the sanctions campaigns by the US and Europe against Russian President Vladimir Putin, overshadowing efforts by UAE officials to ramp up extraditions of high-profile fugitives.