Pakistan to be formally placed in FATF grey list as plenary session begins

objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system

It was to be expected and the ball has been set rolling.

Pakistan is set to be formally placed on the grey list of the Anti-Money laundering watchdog Financial Action Task Force (FATF).

A plenary session is said to begin today in Paris.

It is said that the Pakistan government Ministers also met in the wake of FATF Plenary meeting in Paris.

The Pakistan Finance Minister Shamshad Akhtar was also in the meeting.

A Pakistani delegation would be also attending the FATF.

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

As to how the decision will impact, it is speculation that Pakistan would find it harder for the country to meet its mounting foreign financing needs.

This would also impact its potential future borrowings from the International Monetary Fund.

The decision could also lead to a downgrade in Pakistan’s debt ratings making it more difficult to tap into the international bond markets.

But with the growing pressure from the Trump administration to take action against the terror outfits Pakistan may not be able to wade through this sanction smoothly.

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