Measuring Pakistan's Technical Compliance with FATF Recommendations

In 2018, the FATF placed Pakistan on the ‘grey-list’ – citing ‘structural deficiencies’ that resulted in failure to effectively target TF/ML. Since 2018, Pakistani authorities have resorted to multi-focal action to improve its performance. The Research Society of International Law (RSIL) has recently published a report that presents the most comprehensive work done by an independent think-tank on Pakistan’s progress with regards to the FATF’s 40 Recommendations. The report, titled “Measuring Pakistan’s Technical Compliance with the FATF Recommendations,” provides an objective, independent assessment of Pakistan’s performance based on FATF methodology and the evaluation experience of other states. It finds that the implementation of extensive legislative and administrative reforms has allowed Pakistan to become fully or largely compliant with 34 out of 40 FATF Recommendations, with partial compliance on 6 indicators. This is a significant improvement from FATF’s assessment of Pakistan in February 2020, where the country was fully/largely compliant with just 11 Recommendations, partially compliant with 25 and non-compliant with 4 indicators. This is useful for policymakers in assessing progress on further improving AML/CFT frameworks and illuminating Pakistan’s role and commitment to its international obligations. -------- Note: This report was sponsored by the Research Society of International Law (RSIL), an International Law and Public Policy think tank based in Pakistan. The paper can be accessed on RSIL's website at: https://rsilpak.org/2021/fatf-technical-complaince-pakistan/