PARIS: The Financial Action Task Force (FATF) has taken Pakistan’s off its inglorious grey-list, the global money-laundering watchdog said in a summary document issued ahead of its press conference Friday.

“The FATF welcomes Pakistan’s significant progress in improving its Anti-Money Laundering / Combatting the Financing of Terror (AML/CFT) regime,” it said.

“Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total,” it continued.

“Pakistan is therefore no longer subject to the FATF’s increased monitoring process. Pakistan will continue to work with APG to further improve its AML/CFT system.”

This was the first plenary under the presidency of T. Raja Kumar of Singapore, in which delegates from over 200 jurisdictions of the global network took part.

During the press conference President Kumar said that had completed a combined 34 items in its action plan. “FATF recognises this progress. A FATF team has verified that reforms are in place, and there is high-level commitment and capacity to sustain these reforms,” said Kumar.

“Moving forward, Pakistan needs to work with FATF’s regional partner to ensure sustainable progress.”

While responding to media queries, Kumar said there was still work needed to be done done on the part of Pakistan. “All countries are subject to follow-ups, and Pakistan will have to work with the Asia Pacific Group (APG)” to ensure sustainable progress on the action plan, he added.

Pakistan has appeared on the FATF greylist multiple times since 2008, signaling the organization’s heightened scrutiny of money laundering and terrorism financing in the country.

It was last placed on the list in 2018.

This greylist designation has had a significant impact on Pakistan’s economy, particularly its financial services industry.

FATF concerns had also impacted the country’s IMF program: one of the conditions in the recent $6 billion bailout was the requirement that Pakistan comply with FATF guidelines.

State Minister for Foreign Affairs Hina Rabbani Khar welcomed the decision in a press conference shortly after the announcement.