ISLAMABAD – Pakistan has prepared Terror Financing Risk Assessment Reportin line with the FATF conditions that would be scrutinized in face to faceupcoming 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 offunding being utilized for execution of terrorists’ activities,” confirmedby one top official.
Pakistan’s 12 member delegation headed by Federal Secretary Finance ArifAhmed Khan will be attending the upcoming FATF plenary meeting at Sydney.
The Financing Risk Assessment Report has found that terror financingthreats in Pakistan emanate both from foreign and domestic sources. Thisincludes predicate crimes such as cash smuggling, kidnapping for ransom,narco-trafficking, extortion, etc.
Channels for TF include Hundi/Hawala, Unregistered Charities, VirtualCurrencies, depending on the corresponding threats and preventive controls.Long and porous borders with Afghanistan & other neighboring countriesprovide key pilferage points for terrorism and terrorist financing.Terrorism is also funded externally by hostile intelligence agencies andother anti-state elements.
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Regarding different levels of AML/CFT compliance, the report states thatsome sectors are more compliant in frameworks and procedures such asbanking, NBFIs, securities, insurance, etc: others require enhancement ofsupervisory controls or oversight mechanisms.
Terrorist Financing Threat (Medium) and Terrorist Financing Vulnerability(Medium), assesses the National Terrorist Financing risk as ‘Medium’.
