An increasingly isolated Pakistan is on the verge of stringent action by the international anti-terror financing watchdog FATF by being put in the ‘Dark Grey’ list, the last warning before financial sanctions could kick in. Officials attending the ongoing plenary of the Financial Action Task Force (FATF) in Paris said that as per indications, Pakistan will be isolated by all members for not doing enough.
“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,” an official privy to the development said on Tuesday. If Pakistan, already struggling with economic woes, continues with the ''Grey List'' or puts in the ''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.
The FATF, an inter-governmental forum, will firm up 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 the issuance of a strong warning so that the country concerned gets one last chance to improve, another official said.
The FATF was 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 blacklist with Iran and North Korea.