Islamabad will now have to submit a new report to the APG on the implementation of its recommendations by February 1, 2020.
However, a spokesperson for the Financial Action Task Force (FATF) has dismissed reports that the Asia Pacific Group has 'blacklisted' Pakistan.
Speaking to Geo News, spokesperson Alexandra Wijmenga clarified that only the FATF had the authority to blacklist a country, not its regional affiliates.
According to the spokesperson, the FATF will hold its meeting between October 14 and 18 in Paris and the decisions which are taken there would be published.
Earlier, Pakistan's Ministry of Finance rejected reports in the Indian media that Pakistan had been blacklisted by the APG. "Media reports circulating about Pakistan being blacklisted by APG are incorrect and baseless," a press release from the ministry said on Friday.
"APG has put Pakistan in its enhanced follow-up as per APG's Third Round Mutual Evaluation Procedures. Pakistan would be required to submit follow-up progress reports to APG on quarterly basis," it added.
Pakistan, after being unable to stop terror funding and money laundering, has come under the watch of the enhanced monitoring mechanism of the APG and now it needs to take immediate steps to avoid being blacklisted in the next FATF meet in Paris in October.
( With inputs from IANS )