Ahead of the Financial Action Task Force (FATF) joint plenary in Paris this week, Pakistan is preparing a strong defense to avoid being on the international financial watchdog’s gray list of “jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies”.

The six-day plenary starts this week with delegates from the 203 jurisdictions of the FATF Global Network, as well as the UN, IMF, World Bank and other partner organizations. 

FAFT, incepted in 1989, is a global anti-money laundering and terror finance prevention intergovernmental organization that holds sessions three times a year. It has 37 members and two observer countries. 

According to observers, Pakistan being placed on the gray list would carry a lot of repercussions. “It could deal a heavy blow to economy as stocks would decline and borrowing will become difficult,” said an expert. Pakistan is expecting to avoid being placed on the gray list this time, on which it previously remained for four years. 

Pakistan has made serious efforts to comply with FATF status following the US-sponsored motion in February this year, backed by Britain, France and Germany, which pointed out concerns about the depth of commitment to tackle money laundering and terror financing. But, Pakistan would still require diplomatic backing from its friend China, believe experts.