KARACHI: The European Union (EU) has removed Pakistan from the “list of high-risk third countries” following “increased customer due diligence” by the regional body’s legal and economic operators on Pakistani businesses and individuals. Will not be targeted.
A statement issued today by the Ministry of Commerce said that the European Union authorities have removed Pakistan from the list of countries that have anti-money laundering/countering the financing of terrorism (AML/CFT) regimes. I have strategic flaws that lead to their financial risks. system
According to the delegated regulation, “Following the implementation of action plans to address agreed action plans with the Financial Action Task Force (FATF), Nicaragua, Pakistan and Zimbabwe addressed strategic deficiencies in their respective AML/CFT regimes. is and is no longer a significant AML/CFT risk to the international financial system. Considering their relevance under the revised approach, the Commission considers that these jurisdictions now have their respective AML/CFT There are no strategic deficits in the framework and they do not pose a significant threat to the EU’s financial system.
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— Syed Naveed Qamar (@naveedqamarmna) March 28, 2023
EU has removed Pakistan from the List of High Risk Third Countries. Pakistani businesses and individuals would no longer be subjected to ‘Enhanced Customer Due Diligence’ by European legal and economic operators.
As a result of the said initiative, “mandatory entities” in EU member states will not be required to apply “Enhanced Customer Due Diligence” when dealing with individuals and legal entities established in Pakistan.
“Obligation institutions” include (a) credit institutions, (b) financial institutions and (c) natural or legal persons acting in the exercise of their professional activities. The list of persons includes auditors, external accountants and tax advisors.
Notaries and other independent legal professionals, where they participate, whether by acting on behalf of and for their client in a financial or real estate transaction, or by assisting in planning or for their client By executing the transaction for:
I. buying and selling of real property or businesses;
ii management of client money, securities or other assets;
iii Opening or maintaining bank, savings or securities accounts
iv organization of partnerships necessary for the creation, operation or management of companies;
v. creation, operation or management of trusts, companies, foundations, or similar structures;
The list of liable entities also includes trust or company service providers not already covered under point (a) or (b), estate agents and other persons dealing in goods to the extent that payments are made in cash. are made or received in an amount of EUR 10,000 or more, whether the transaction is carried out in one operation or in several operations that appear to be connected.
Pakistan was included in the “List of High Risk Countries” by the European Union on 22 October 2018.
Pakistan’s place on the list created an unnecessary regulatory burden on “mandatory entities” in the EU and there were instances of some refusing to conduct legal and financial transactions with individuals and entities based in Pakistan. was given
The Ministry said that the new development will increase the comfort level of European economic operators and is likely to reduce the cost and time of legal and financial transactions of Pakistani entities and individuals in the region.
UK removed Pakistan from the high-risk list in November 2022.
