Score On Global AML Index
Score on global AML Index after Pakistan was removed from the Financial Action Task Force (FATF) gray list, global banking regulators recognized the country’s progress in regulating financial matters in general, slightly lowering the country’s risk rating. However,
Experts believe that Pakistan’s recently released Basel AML (Anti-Money Laundering Index) index would not benefit the country’s economy as a whole, amid more significant challenges that have ‘eclipsed’ progress on the regulatory front.
“Pakistan’s ML/FT [Money Laundering and Terrorist Financing] Overall Risk Score on global AML index in the Basel Anti-Money Laundering Index (publication) is 6.16. This puts it in the medium-risk category compared to other global jurisdictions. In the latest edition of Expert, which is updated quarterly with the latest data, the risk score is just under 6.11″, according to the Basel AML Index report for Pakistan.
Pakistan received four additional reports between 2018 and 2022 and its technical data improved its compliance score from 41 to 72% Currently, Pakistan is classified as “largely compliant” with most FATF 40 recommendations.
“Over the years, Pakistan’s regulatory regime has become more stringent, in line with world best practices. While there are still many risks, we have seen significant progress in addressing money laundering and related issues,” said Topline Securities’ Mohammed Sohail. Said Sana Tawfik of Arif Habib Ltd. “But I don’t think it matters given the other hype surrounding our political instability or our ratings,” said international credit agencies, who don’t think this has resulted in any improvement in any sector of our economy.
“Though we’ve improved over the years, we’re far behind in global rankings,” said Haris Ali, an IT specialist who provides FATF-compliant technology services to businesses.