ISLAMABAD – Pakistan has completed all the requirements set out by theFinancial Action Task Force (FATF) for its second review. However, it stillneeds diplomatic support to strengthen its case.
The concerned government offices have presented a ‘satisfactory report’ onthe implementation of the 27-point FATF Action Plan in an in-camerabriefing to the National Assembly Standing Committee on Finance.
The briefing was given by the Ministry of Finance, State Bank of Pakistan,and the National Counter Terrorism Authority (NACTA). It mainly focused onthe fact that Pakistan has made significant progress in meeting thestandards set by the international institution concerned with combatingterror financing and money laundering.
The briefing also included concerns that certain regional and global powersmay jeopardize Pakistan’s interests. However, the committee members werenot completely satisfied with the briefing. The presentation by thegovernment officials did not include point-by-point briefing due to whichan objective analysis of the country’s footing cannot take place.
The committee was not briefed about the exact level of compliance on the 19actions conditioned by the FATF for the second review that will take placein June.Chairman’s Briefing
In a brief statement to the media following the meeting, Standing CommitteeChairman Faizullah said that Pakistan has sent a satisfactory report to theFATF on implementation of its action plan. He added that all thetechnicalities of the review have been fulfilled and now the government isworking on the political aspects.——————————
According to a few committee members, without political and diplomaticefforts, odds are rare that Pakistan would be able to satisfy the FATF.Therefore, the government will seek support from at least four countries toback its case in the FATF second review.
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Notably, for the second review, Pakistan needs to meet 19 points out of the27-point action plan. These 19 conditions include the three FATF declaredas unsatisfactory in the first review.
The committee chairman said that the government is determined to completeall the conditions set out by the terror financing watchdog. He said thatthe government has already submitted the Anti Money Laundering Bill 2019 inthe National Assembly. It will be enacted soon, he told.
The major hurdle in Pakistan’s way is India, as it has underminedPakistan’s case before the FATF earlier as well. The director general ofIndia’s Financial Intelligence Unit (FIU) is the co-chair of the JointGroup (JG) of the International Cooperation Review Group (ICRG) of the AsiaPacific Group.
This is the same group that is presenting Pakistan’s case before the FATFand its Joint Group is holding a meeting next month in Sri Lanka. After themeeting, the case will be presented in the plenary meeting of the FATF inJune. India’s presence as the co-chair can highly imperil the prospects ofPakistan getting off the greylist.
Pakistan has requested the FATF to remove India as the co-chair of theJoint Group to ensure the review process is unbiased, fair, and objective.However, the FATF did not cater to Pakistan’s request.
