Money Laundering, Terror Financing and FATF: Implications for Pakistan

Abstract

In 2018, the Financial Action Task Force (FATF) put Pakistan on the so-called ‘grey list’ for not taking sufficient actions against money laundering and terror financing. Financing has represented a noteworthy challenge in tackling the scourge of terrorism, as it is fundamental in directing all terrorism-related activities. Though Pakistan had taken numerous actions regarding Anti-Money Laundering (AML) and Counter Terror Financing (CTF), still there are many gaps in its existing AML/CTF framework. In this vein, this paper tries to comprehend money laundering and terror financing mechanisms, together with their origins and impacts in general and on Pakistan specifically. Moreover, the paper discusses the role of FATF, Pakistan’s efforts to fulfill its recommendations and way forward.