Pakistan is on the verge of being blacklisted by the Asia-Pacific Group, one of the regional affiliates of anti-money laundering watchdog FATF

Pakistan has submitted its compliance report on 27-point action plan committed with the FATF to the APG.

After being placed on the grey list by the Financial Action Task Force (FATF), Pakistan is now on the verge of being blacklisted by the Asia-Pacific Group (APG) -- one of the nine regional affiliates of the anti-money laundering watchdog.

The APG is currently meeting at Canberra in Australia conducting a five-year mutual evaluation of Pakistan's progress on upgrading its systems in areas of financial and insurance services and sectors.

Pakistan on Wednesday had submitted the compliance report on its 27-point action plan to the FATF, which is currently under review by the APG and has found Islamabad lacking on many fronts.

The APG has reportedly identified deficiencies in Islamabad’s anti-money laundering and combating terror financing efforts. Pakistan’s contentions on improving its grading in different parameters are also not getting any support.

In the APG, there are around 40 parameters of which Pakistan has failed in over 35. There are 11 effectiveness parameters and Pakistan has failed in 10, sources have said.

Pakistan has to show compliance in both, the MER and the FATF action plan, in the next plenary session of the FATF which will take up the final review of Pakistan’s case in October.

If the Pakistani delegation fails to convince the regional grouping, then the country will be put on the lowest list of the APG -- blacklist.

After pressure from the US, France, Germany, UK, Pakistan was earlier grey-listed by the FATF. Adverse findings by the APG will keep Islamabad on the negative radar when the deadline for the final review ends October 2019 which could mean more trouble for Pakistan with possible initiation of the blacklisting process.