Pakistan PM Imran Khan meets Chinese President Xi Jinping Photograph:( Reuters )
Sources reveal that a meeting of the international cooperation review group, sub-group of the FATF, has recommended to retain Pakistan on the greylist
In a major shift in China’s position, which has always backed Pakistan at the FATF, Beijing sent a stern message to Pakistan to complete its commitments on action against terrorist financing.
It is an extremely significant development and India now has China, Saudi Arabia, US and European countries backing its stand.
Despite the eyewash of Hafiz Saeed's sentencing days ahead of the financial action task force, Pakistan continues to be on the financial watchdog's greylist.
Sources have told WION that though the current FATF chair China along with Turkey and Malaysia pushed Pakistan's case, it will remain where it has been for over 18 months.
Sources reveal that a meeting of the international cooperation review group, sub-group of the FATF, has recommended to retain Pakistan on the greylist.
The final decision will be taken on Friday when the FATF takes up Pakistan’s case.
Blacklisting by the Paris-based financial action task force could have been a blow for Pakistan's economic reform programme leading to severe economic sanctions.
The international monetary fund had said in an internal report that it would have led to a freeze on investments and other capital inflows, including funding by the IMF, if Pakistan is not removed from the grey list by April, it may automatically slide into the blacklist.
The body had warned that Islamabad in October last year could be put on the blacklist if it did not comply with the remaining 22 out of 27 points related to anti-money laundering and counter-terrorist financing.
Pakistan in its report to FATF had stated that while it has completely implemented 14 out of the 27 points in the FATF action plan, it has also been partially compliant with at least 11 points.
On the other hand, FATF has demanded Pakistan to further tighten its laws and hold organizations and individuals behind money laundering and terror financing accountable.