In a major jolt to Imran Khan, the Asia-Pacific Group of the global financial watchdog Financial Action Task Force (FATF) on Friday has put Pakistan in the "enhanced blacklist" for its inaction against terror funding perpetrating on its soil. This development came a day after Pakistan submitted its compliance report on its 27-point action plan to the Financial Action Task Force (FATF) in hope to for a possible exit from the grey list. However, APG (Asia/Pacific Group on Money Laundering) placed Pakistan in the Enhanced Expedited Follow Up List (Black List) for failure to meet its standards, after FATF found Pakistan non-compliant on 32 of 40 compliance parameters on money laundering and terror financing.
"The APG has placed Pakistan in the Enhanced Expedited Follow Up List (Black List) for failure to meet its standards," an Indian official said in the development.
Furthermore, on 11 effectiveness parameters, Pakistan was adjudged as Low as 10. The FATF APG meeting was held in Canberra, Australia and the discussions lasted over seven hours over two days. APG is the regional affiliate of the FATF and its decisions have a large bearing on the organisation’s decisions on Pakistan. Now, Pakistan has to focus on avoiding the Black List in October 2019, when the 15-month timeline ends on FATF's 27-point Action plan. The global watchdog, earlier in June, had asked the Imran Khan government to curb terror financing by October or face actions. Pakistan was asked to take action against UN-designated terrorists including Hafiz Saeed and Masood Azhar, who are operating on its soil.
In a major blow to Imran Khan, if Pakistan will stay on the greylist, or is blacklisted, it will be facing a financial downgrade and restrictions on its markets. It will also have a tough time managing capital inflows from IMF (International Monetary Fund) and other agencies, as well as servicing its debt that adds up to about 25% of the government’s revenues at present. Imran Kahn-led Pakistan was earlier placed in grey-list by the FATF after mounting pressure from the US, France, Germany, UK over its lack of action against terror-funding.