European Union removes Pakistan from listing of ‘High-Risk Third Countries’

Pakistan was included on the listing in 2018, inserting the nation below further regulatory restrictions. The listing consists of international locations that the European Union considers to have strategic deficiencies of their anti-money laundering and counter-terrorism financing frameworks.

De-listing of Pakistan from EU’s up to date listing of high-risk third-countries is a serious growth (Representationa Image)

By Press Trust of India: The EU has eliminated Pakistan from its listing of “High-Risk Third Countries” that do not have a robust anti-money laundering and countering terrorist financing regime, a move welcomed by Prime Minister Shehbaz Sharif on Wednesday as a major development which would facilitate the cash-strapped country’s businesses.

The developments come as a much-needed breather when Pakistan faces an economic crisis.

The EU’s delegation in Pakistan termed it an “important positive step” for Pakistan.

“In line with last year’s FATF (Financial Action Task Force) decision, the EU has decided to remove Pakistan from its list of countries with high risk regarding money laundering and financing of terrorism,” it said on Twitter.

It was referring to the decision by the global money laundering and financing watchdog, the Financial Action Task Force (FATF), to remove Pakistan from its list of countries under “increased monitoring”.

In a statement announcing the news on Wednesday, Pakistan’s Ministry of Commerce said the listing of Pakistan in 2018 had resulted in creating a regulatory burden affecting Pakistani companies doing business with the 27-member bloc.

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Pakistan was included on the list in 2018, placing the country under additional regulatory restrictions.

The list includes countries that the European Union considers to have strategic deficiencies in their anti-money laundering and counter-terrorism financing frameworks.

Prime Minister Sharif in a Twitter post said that the decision would facilitate the country’s businesses, individuals and entities.

“De-listing of Pakistan from EU’s up to date listing of high-risk third-countries is a serious growth which might facilitate our companies, people and entities,” the Pakistan chief tweeted.

PM Shehbaz additionally mentioned it was a mirrored image of the federal government’s unwavering resolve to additional strengthen the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.

According to the Delegated Regulation, following the measures carried out to deal with the motion plans agreed with the Financial Action Task Force (FATF), Nicaragua, Pakistan and Zimbabwe remedied the strategic deficiencies of their respective AML/CFT regimes and not pose a major AML/CFT risk to the worldwide monetary system.

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Pakistan’s Ministry of Commerce mentioned the EU member states’ “Obligated Entities” will not be required to use “Enhanced Customer Due Diligence” whereas conducting transactions with people and authorized entities established in Pakistan.

The entities embody credit score establishments, monetary establishments, auditors, exterior accountants, tax advisors, notaries, impartial authorized professionals (appearing on behalf of and for his or her consumer in any monetary or actual property transaction), property brokers and people buying and selling in items.

Pakistan’s exclusion from the listing would add to the consolation stage of the European financial operators and is more likely to ease the associated fee and time of authorized and monetary transactions by Pakistani entities and people within the EU, in response to the ministry assertion.

Foreign Minister Bilawal Bhutto Zardari in an announcement mentioned that it will assist Pakistan’s financial system.

“Pakistani businesses and individuals would no longer be subjected to enhanced customer due diligence by European legal and economic operators,” he added.

Published On:

Mar 29, 2023