Pakistan has been removed from the EU "List of High-Risk Third Countries."

KARACHI: As a result of Pakistan's removal from the "List of High-Risk Third Countries" by the European Union (EU), the regional body's commercial and economic operators will no longer subject them to "Enhanced Customer Due Diligence."

According to a statement from the Ministry of Commerce, Pakistan has been removed off the list of countries whose financial systems are seriously threatened by strategic shortcomings in the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime.

"After the actions implemented to meet the action plans agreed upon with the Financial Action Task Force,"

According to the above legislation, "Obligated Entities" in EU member states are no longer required to do "Enhanced Customer Due Diligence" when dealing with people and organisations based in Pakistan.

Credit institutions, financial institutions, and natural or legal people operating in the course of their professional activity are all considered "Obligated Entities." Auditors, outside accountants, and tax consultants are included on the list of individuals.

The European Union included Pakistan to its "List of High-Risk Countries" on October 22, 2018.

According to the ministry, the new development would increase the degree of confidence among European businesspeople and is anticipated to reduce the expense and duration of legal and financial operations by local Pakistani organizations and people.