Banks to face cut in profits if Pakistan remains in FATF's grey list: Moody's
FATF is keeping a check on the banks' international transactions as well, and action has also been taken against some local banks
Credit ratings agency Moody’s in a recently issued report said that Pakistan being retained in the Financial Action Task Force's (FATF) grey list will not bode well for Pakistani banks.
FATF is keeping a check on the banks' international transactions as well, and action has also been taken against some local banks.
Two local banks recently had their international license cancelled for not complying with anti-money-laundering laws.
Read more: Moody's says Pakistan banking system has 'stable outlook' for next 12-18 months
The report further states that banks can face a reduction in profits because of the stringent conditions they are being told to meet.
According to the report, Pakistan has met 14 out of 27 conditions of the FATF and is in pursuit of fulfilling the other 13 demands, adding that the FATF is closely monitoring 17 countries including Pakistan.
The country's State Bank has also expressed hope that Pakistan's name will be expunged from the grey list in June 2020, as the FATF has asked Pakistan to comply with its conditions by then.