The European Union Thursday confirmed reports that the bloc has removed Pakistan from the list of High-Risk Third Countries linked with money laundering and terrorism financing.

“The Commission has been closely following the delisting process of Pakistan, which has addressed all its shortcomings with regards to its two FATF action plans.

The Commission considered that Pakistan no longer poses significant threats to the financial system of the Union,” Daniel Ferrie, EU Spokesperson for financial services and capital markets, told a news conference in Brussels today.

“The Commission encourages Pakistan to sustain its progress.

A robust regime to fight against money laundering and terrorism financing is in the interest of Pakistan to ensure stability in the region and maintain good relationship with the international community,” he said.

Ferrie noted that on 19 December 2022, the European Commission adopted an amended EU list of third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

This list takes into account the information from the FATF and the changes over 2022 in the FATF list of “Jurisdictions under Increased Monitoring” (“grey list”), including the delisting of Pakistan, he said.

This list entered into force on 16 March 2023 following the scrutiny period by European Parliament and the Council which represents the 27-EU member states, said the spokesperson.

The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing.

The 39-member body sets international standards to ensure national authorities can effectively go after illicit funds linked to drugs trafficking, the illicit arms trade, cyber fraud and other serious crimes.

In 1989, FATF was established in Paris.

Source: Kuwait News Agency