EU Eases Financing Restrictions on Pakistan Departure off the “list of High-Risk Third Countries” Reduces Trade Obstacles for Pakistani Exporters EU Eases Financing Restrictions on Pakistan.
The Ministry of Commerce reported on Wednesday that the European Union (EU) has removed Pakistan from its list of “High-Risk Third Countries” for anti-money laundering and terrorist funding reasons.
The EU said on Twitter that it has eliminated Pakistan from its list of nations having a high risk of supporting terrorism and money laundering “in accordance 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 terrorist funding is known as the EU High Risk Third Countries list.
In a statement, the Ministry of Commerce said that Pakistan’s inclusion on the EU’s list in October 2018 put “Obligated Entities” within the Union under unnecessary administrative requirements and hampered legal and financial dealings with people and organizations with a basis there.
It further said that while conducting business with people and legal companies registered in Pakistan, “Enhanced Customer Due Diligence” would no longer be needed of “Obligated Entities” from EU member states.
Credit institutions, financial institutions, auditors, outside accountants, tax consultants, notaries, independent lawyers (working on behalf of and for their client in any financial or real estate transaction), estate agents, and persons engaged in commerce are among the entities.
Identification of high-risk third countries with critical gaps in their AML/CFT (anti-money laundering and countering the financing of terrorism) regime is the responsibility of the EU Commission.
Syed Naveed Qamar, the minister of commerce, said that Pakistan has been taken off the list by the EU.
He went on to say that “Enhanced Customer Due Diligence” by European legal and commercial actors would no longer apply to Pakistani companies and people.
Senator Sherry Rehman also tweeted to corroborate the story, attributing it to Foreign Minister Bilawal Bhutto.
Because to FM Bilawal’s efforts, there would be less barriers to trade for Pakistani exporters, she remarked.
Pakistan was removed off the Financial Action Task Force’s (FATF) global money laundering radar in October of last year, and the UK decided to do the same in November.
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, has earlier emphasized the urgent need for action to “lift the country’s economy out of crisis through sustained export-led economic growth.”
The international monetary fund (IMF) and Pakistan are still in negotiations for the ninth review of the loan program, which started on January 31 and was supposed to be ended by February 9. As a result, the economy is still under pressure.