Pakistan faces 'strong action' by FATF, set for spot on 'Dark Grey' list for not doing enough to combat terror financing

Paris: Pakistan is on the verge of strong action by the international terror financing watchdog Financial Action Task Force (FATF) and the country may be put in the 'Dark Grey' list, the last warning to improve.Officials attending the ongoing plenary of the FATF said 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.The FATF will finalise its decision on Pakistan on 18 October.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.'Dark Grey' was the term used for warning up to 3rd Phase. Now it's just called warning — that is the 4th phase.The FATF is an inter-governmental body 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.If Pakistan continues with the 'grey list' or put in '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.