Financial Action Task Force (FATF) has strongly urged Pakistan to swiftly complete its full action plan by February 2020 otherwise if it should be ready to face action.

"If significant and sustainable progress is not made by Pakistan across the full range of its action plan by next Plenary, the FATF will take action," the terror funding watchdog said.

If Pakistan fails to take action, the FATF will urge members to advise their financial institutions to give special attention to business relations and transactions with Pakistan.

Financial Action Task Force(FATF): ..including urging members to advise their financial institutions to give special attention to business relations/transactions with Pakistan. (2/2) https://t.co/YqwkdjFgPQ — ANI (@ANI) October 18, 2019

In light of the additional fact of Pakistan's poor performance on its Mutual Evaluation, chances of Pakistan exiting the FATF's Grey List in the next few years are now reduced to nil. The possibility of a formal Blacklisting in February 2020 is now highly probable.

By making this decision public, Financial Action Task Force has given notice to global financial institutions that they need to prepare to red flag the jurisdiction and ready their systems for the eventuality in February 2020.

The country was placed on the Grey List by the watchdog in June 2018 and was given 15 months to complete the implementation of a 27-point action plan, failing which it be placed in the Black List.

It included safeguards against money-laundering and terror-financing by banned outfits and non-government entities through banking and non-banking jurisdictions, capital markets, corporate and non-corporate sectors like chartered accountancy, financial advisory services, cost and management accountancy firm, jewellery and similar related services.

According to the FATF, rules, there is one essential stage between ''Grey'' and ''Black'' lists, referred to as ''Dark Grey''. This is the issuance of a strong warning so that the concerned country gets one last chance to improve

''Dark Grey'' was the term used for warning up to 3rd Phase. Now it's just called warning -- that is the 4th phase.

According to reports, Islamabad has been engaged in hectic lobbying in a last-ditch bid to influence the outcome in its favour. This year, Pakistan's all-weather ally China holds the presidency of the FATF. (ANI)

(More details awaited...)