Islamabad (Web Desk): The European Commission has removed Pakistan from its “High Risk Third Countries” list, which poses significant threats to the European Union’s financial system.
According to the Ministry of Commerce’s statement issued on Wednesday EU member states’ “Obligated Entities” will no longer be required to apply “Enhanced Customer Due Diligence” while conducting transactions with individuals and legal entities established in Pakistan.
The entities include credit institutions, financial institutions, auditors, external accountants, tax advisors, notaries, independent legal professionals (acting on behalf of and for their client in any financial or real estate transaction), estate agents and individuals trading in goods.
As a consequence of the said measure, the “Obligated Entities” in EU member states would no longer be required to apply “Enhanced Customer Due Diligence” while dealing with individuals and legal entities established in Pakistan.
The “Obligated Entities” include (a) credit institutions, (b) financial institutions and (c) the natural or legal persons acting in the exercise of their professional activities. The list of persons includes auditors, external accountants and tax advisors.
Pakistan was added to the EU’s list in October 2018, which imposed undue regulatory burdens on “Obligated Entities” within the Union and created obstacles in legal and financial transactions with individuals and entities based in Pakistan.
