FATF_In the grey list—for now!, (AKD Daily, Feb 26, 2021)
AKD Daily
FATF: In the grey list - for now!
- In its latest Feb’21 plenary review, the Financial Action Task Force (FATF) has expectedly retained Pakistan in its ‘grey list’ – officially known as ‘Jurisdictions under Increased Monitoring’, while acknowledging the significant progress made on the entire action plan.
- Pakistan is now largely complaint on 24 out of 27 items of the action plan (vs. 21/14/5 in Oct’20/Feb’20/Oct’19). It needs to show compliance on the remaining 3 counts by Jun’21 to complete the FATF action plan which are mostly related to the implementation of the amended regulations.
- The overall tone of the statement was encouraging, with the global body recognizing notable progress made so far – a continuation of the previous statement for this round of consultation. With ~89% compliance achieved against the action plan, the question now turns to when Pakistan would exit the grey list where we believe graduation from grey list would be likely in Oct’21 (post on-site testing) assuming Pakistan achieves compliance over the remaining 3 counts.
- While the FATF’s decision of keeping Pakistan in the grey list was widely expected, the market should positively react to formal acknowledgment of the progress made so far and improving diplomatic relations with neighboring India, which would make the process of exiting the ‘grey list’ rather smooth.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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