Pakistani banks may lose business, pay more global transactions if terror not combated, warns Moody's
Updated : February 28, 2020 07:32 PM IST
Moody's Investors Service said the announcement is credit negative for Pakistani banks because there are potential additional restrictions for the banks' foreign-currency clearing services as well as foreign operations.
FATF gave Pakistan an extension for completing the June 2018 action plan on anti-money laundering (AML) and combating financing of terrorism (CFT) till June 2020.
The FATF at its February meet warned that it will urge member countries to scrutinise their business transactions with Pakistan if the country fails to complete the action plan regarding terror financing.