The Asia Pacific Group on Money Laundering and Terror Financing have put Pakistan in the Enhance Expedited Followup List (Blacklist) following a seven hour-long meeting in Canberra, Australia.
Pakistan was found non-compliant on 32 of the 40 compliance parameters despite repeated warnings to comply.
What is FATF?
The Financial Action Task force (FATF) is an inter governmental body whose purpose is the development and promotion of policies, both at the national and International levels, to combat money laundering and terrorist financing
The organisation annually evaluates whether countries meet the prescribed conditions, proceeding to put them on the grey list (warning) or Blacklist them if the conditions are not met
What does this mean for Pakistan?
The blacklist will significantly hamper Pakistan’s already overburdened economy and will make the possibility of an International Monetary Fund (IMF) bailout highly improbable. “This is not a good sign for the already troubled economy of Pakistan; the impact of this will be felt by every citizen. with inflation reaching its highest peak in weeks!” says a person with specialized knowledge on the subject.
What is the impact on China?
China has displayed a history of supporting what some call its “All-weather ally” Pakistan. Given Pakistan’s current financial predicament The People’s Republic of China won’t be able to help but pump additional loans to the country, with the immense cost being borne by its own citizens.