PAKISTAN is trying to put all its effort to exit from the grey list of the Financial Action Task Force (FATF). The nation is set to introduce new rules related to anti-money laundering cases and change the prosecution process to meet its remaining tough conditions.
In June 2018, the Paris-based FATF had put Pakistan on the grey list and since the country is struggling to exit the list.
Paris-based FATF is the global watchdog for money laundering and terror financing.
According to the Dawn newspaper’s report, the changes being made also include the transfer of investigations and prosecution of anti-money laundering (AML) cases from police, provincial anti-corruption establishments (ACEs) and other similar agencies to specialised agencies.
This is part of two sets of rules including the AML (Forfeited Properties Management) Rules 2021 and the AML (Referral) Rules 2021 under the National Policy Statement on Follow the Money approved by the federal Cabinet meeting a few days ago, the report said.
However, the FATF would conclude if Pakistan has complied with three outstanding benchmarks, out of 27. This year in February FATF had blocked its exit from the grey list due to lack of compliance.
The three outstanding action points out of a total of 27 include - demonstrating that terrorist financing (TF) investigations and prosecutions target persons and entities acting on behalf or at the directive of the designated persons or entities.
Second outstanding action points- demonstrating that TF prosecutions result in effective, proportionate, and dissuasive sanctions.
Third action point - demonstrating effective implementation of targeted financial sanctions against all designated terrorists, particularly those acting for them or on their behalf.
Several review meetings of the FATF are scheduled to begin in the second week of June, culminating in the next FATF plenary on June 21-25.
So far, Pakistan has submitted three Follow Up Report FURs in February and October 2020 and February 2021. Of these FURs, only one report had been adopted by the APG in which Pakistan was re-rated in Recommendation No 29 (Financial Intelligence Unit) from ‘partially compliant' to ‘compliant'.
In the remaining two FURs, Pakistan had requested for re-rating in 27 recommendations, analysis of which is being conducted by the APG and the same will be adopted within this month.
