EU removes Pakistan from its high-risk countries list

ISLAMABAD

The European Union (EU) has removed Pakistan from its list of High-Risk Third Countries after Islamabad got off the Financial Action Task Force’s (FATF) list of countries under increased monitoring, also known as the “grey list” last year, Pakistan’s Ministry of Commerce said on Wednesday.

In a statement, the ministry welcomed the development and said it would add to the comfort level of the European economic operators.

“The placement of Pakistan in the list had created an undue regulatory burden on ‘Obligated Entities’ in EU and there were instances whereby some of them had refused to entertain legal and financial transactions with individuals and entities based in Pakistan,” said the ministry.

“[However] the new development would add to the comfort level of the European economic operators and is likely to ease the cost and time of legal and financial transactions by Pakistani entities and individuals in EU,” hoped the ministry.

“An important positive step for (Pakistan)! In line with last year's FATF decision, the EU has decided to remove (Pakistan) from its list of countries with high risk regarding money laundering & financing of terrorism,” EU Pakistan tweeted.

The EU had placed Pakistan on its list of High-Risk Third Countries in October 2018 after the FATF listed Islamabad on its grey list in June 2018, for deficiencies in its system to curb money laundering and terror financing.

However, after four years the FATF removed Islamabad from its grey list in October 2022 following the completion of a 34-point action plan.