Pakistan is no more a ‘high risk country’, says European Union
ISLAMABAD: Declaring Pakistan a no more ‘high risk country’, the he European Union (EU) has removed Pakistan its list of the High-Risk Third Countries.
Now Pakistani businesses and individuals will not be subjected to “Enhanced Customer Due Diligence” for business and financial transactions.
The Ministry of Commerce today said, “The EU authorities have removed Pakistan from the list of those nations which have strategic deficiencies in the Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime that pose significant threat to their financial system.”
According to the delegated regulation,
“Following the measures implemented to address the action plans agreed with the Financial Action Task Force. Pakistan, Zimbabwe and Nicaragua have remedied the strategic deficiencies in their respective AML/CFT regimes and no longer pose a significant AML/CFT threat to the international financial system. Thus, taking into account their relevance under the revised methodology, the Commission considers that these jurisdictions no longer have strategic deficiencies in their respective AML/CFT frameworks and do not pose a significant threat to the financial system of the European Union.”
Meanwhile, Notaries and other legal professionals, whether acting on behalf of their client in any financial or real estate transaction, or by assisting in the planning or carrying out of transactions for their client can perform following functions:
i. buying and selling of real property or business entities;
ii. managing of client money, securities or other assets
iii. opening or management of bank, savings or securities accounts
iv. organisation of contributions necessary for the creation, operation or management of companies;
v. creation, operation or management of trusts, companies, foundations, or similar structures.
Importantly, In October 2018, the European Union included Pakistan in the “List of High-Risk Countries”.
It created an undue regulatory burden on “Obligated Entities” in the EU.
According to the Ministry of Commerce,
“The new development would add to the comfort level of the European economic operators and is likely to ease the cost and time of legal and financial transactions by Pakistani entities and individuals in the region.”
Also, the United Kingdom had already removed Pakistan from the high-risk list in Nov 2022, acknowledging prudent measures enforced in Pakistan.
