The Ministry of Commerce reported on Wednesday that the European Union (EU) had removed Pakistan from its list of “High-Risk Third Countries” for anti-money laundering and terrorist funding purposes.
The EU said on Twitter that it had eliminated Pakistan from its list of nations having a high risk of supporting terrorism and money laundering “in line with the FATF decision from last year.”
A list of nations that the EU believes have strategic flaws in its frameworks. For fighting money laundering and countering terrorism financing is known as the EU High Risk Third Countries list.
The Ministry of Commerce noted in a statement that Pakistan’s inclusion on the EU’s list. In October 2018 put “Obligated Entities” within the Union under unnecessary regulatory burdens and hampered legal.
And financial dealings with people and businesses headquartered there.
It further stated that while conducting business with people and legal companies registered in Pakistan, “Enhanced Customer Due Diligence” would no longer be required of “Obligated Entities” from EU member states.
Credit institutions, financial institutions, auditors, outside accountants, tax advisers, notaries, independent legal professionals. (Working on behalf of and for their client in any financial or real estate transaction), estate agents, and individual traders are among the entities.
The EU Commission is tasked with identifying high-risk third countries that have strategic gaps in their AML/CFT system.
European legal and commercial actors would no longer be required to do “Enhanced Customer Due Diligence” on Pakistani companies and individuals, “he continued.
Senator Sherry Rehman, who confirmed the news in a tweet, gave credit to Foreign Minister Bilawal Bhutto for the accomplishment.
FM Bilawal’s initiatives have reduced trade barriers for Pakistani exporters “she stated.
The events provide Pakistan with a much-needed reprieve during its worst economic crisis in decades.
Ahsan Iqbal, Pakistan’s minister for planning and development, had earlier emphasised. The urgent need for action to “lift the country’s economy out of crisis through sustainable export-led economic growth.”
The international monetary fund (IMF) and Pakistan are still in negotiations for the ninth review of the loan programme.
This started on January 31 and was supposed to be finished by February 9. As a result, the economy is still under pressure.
