WASHINGTON: Pakistan has outstanding counter terrorism deficiencies consistently raised by the Financial Action Task Force and needs to take actions, including on the raising and moving of funds of UN-designated terrorist groups, a top US official has said.

The US State Department official's remarks have come two days after global financial watchdog Financial Action Task Force (FATF) placed Pakistan on the grey list for failing to curb anti-terror financing.

The announcement was made despite Pakistan submitting a 26-point action plan and launching a concerted diplomatic effort to avert the decision.

"Pakistan has outstanding counter terrorism financing (CFT) deficiencies consistently raised by the Financial Action Task Force (FATF)," a State Department Spokesperson told PTI yesterday.

"Pakistan will need to take a number of comprehensive actions on CFT including the raising and moving of funds of UN-designated terrorist groups," the Spokesperson said in response to questions on Pakistan being placed on the gray list by the FATF.

The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.

The spokesperson, however, welcomed the assurance given by Pakistan to work in this area.

"We are pleased that Pakistan has made a high-level political commitment to work with the FATF to address weaknesses in its CFT regime," the official said.

"We strongly encourage Pakistan to work with FATF and the international community to meet its CFT obligations, including fulfilling its commitments under UN Security Council Resolution 1267 to freeze and prevent the raising and moving of funds belonging to or associated with UN-designated terrorist groups," the spokesperson said.

By January next year, Pakistan will publish updated lists of persons and entities proscribed under the Anti-Terrorism Act and the UN-designated entities.

Pakistan had tried hard to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing rules.