UK adds Pakistan to 21 high-risk states list

16 April, 2021 12:00 AM printer

LONDON: The UK government has added Pakistan to the list of undesirable 21 high-risk countries with unsatisfactory money laundering and terrorist financing controls, reports agency.

This list of 21 countries — released by the UK Government — replicates the list of countries named by the Financial Action Task Force (FATF) as high-risk or under increased monitoring. Pakistan shares the list at number 15 with conflict-ridden countries such as Syria, Uganda, Yemen and Zimbabwe.

The full list of high-risk third countries under Schedule 3ZA includes, in order: Albania, Barbados, Botswana, Burkina Faso, Cambodia, Cayman Islands, Democratic People’s Republic of Korea, Ghana, Iran, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Senegal, Syria, Uganda, Yemen and Zimbabwe.

According to the UK government, the nations in this category pose a threat because of weak tax controls and lack of check and balance on terrorism-financing and money-laundering. The UK government’s “Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021” has come into force from March 26, 2021 after the definition of a high-risk third country identified in a new Schedule 3ZA.

The list has been released as part of post-Brexit developments. Until the end of the Brexit transition period, the list of high-risk countries was determined by the European Union (EU) under the 4th Anti-Money Laundering Directive. Now the UK has its own standalone list with Pakistan featuring in it. The new UK Government legislation identifies a “high-risk third country” as a country which is specified in Schedule 3ZA” and “a country which has been identified by the European Commission as a high-risk third country in delegated acts adopted under Article 9.2 of the fourth money laundering directive” substitute “a high-risk third country”.