But inclusion on the FATF watchlist could inflict real damage, bankers and government officials say. Banks have been retreating from high-risk countries in recent years amid intense pressure from global regulators to guard against money laundering and terrorist financing. “No one wants to get caught in a situation where for a few million dollars of business the bank will have to pay billions in fines,” added the foreign bank executive. One Pakistani money manager launching an alternative investment fund said he fears his new venture could now struggle to attract US and European investment. “It’s already tough to raise money in Pakistan and anything to do with a ‘terror financing’ watchlist will just scare people,” said the fund manager.

Source: Dhaka Tribune February 16, 2018 17:15 UTC