Pakistan prepares Terror Financing Risk Assessment Report for FATF crucial session
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ISLAMABAD - Pakistan has prepared Terror Financing Risk Assessment Report in line with the FATF conditions that would be scrutinized in face to face upcoming meeting of the FATF scheduled to be held next week at Sydney.
“We will dispatch Terror Financing Risk Assessment Report to FATF on Friday (today) that basically identifies both domestic and foreign sources of funding being utilized for execution of terrorists’ activities,” confirmed by one top official.
Pakistan’s 12 member delegation headed by Federal Secretary Finance Arif Ahmed Khan will be attending the upcoming FATF plenary meeting at Sydney.
The Financing Risk Assessment Report has found that terror financing threats in Pakistan emanate both from foreign and domestic sources. This includes predicate crimes such as cash smuggling, kidnapping for ransom, narco-trafficking, extortion, etc.
Channels for TF include Hundi/Hawala, Unregistered Charities, Virtual Currencies, depending on the corresponding threats and preventive controls. Long and porous borders with Afghanistan & other neighboring countries provide key pilferage points for terrorism and terrorist financing. Terrorism is also funded externally by hostile intelligence agencies and other anti-state elements.
Regarding different levels of AML/CFT compliance, the report states that some sectors are more compliant in frameworks and procedures such as banking, NBFIs, securities, insurance, etc: others require enhancement of supervisory controls or oversight mechanisms.
Terrorist Financing Threat (Medium) and Terrorist Financing Vulnerability (Medium), assesses the National Terrorist Financing risk as ‘Medium’.
