ISLAMABAD – Financial Action Task Force (FATF) has asked Pakistan to domore to strengthen its legal framework if it wants to avoid beingblacklisted by the Paris-based anti-money laundering watchdog, according toa media report on Thursday.
Pakistan has been scrambling in recent months to avoid being added to alist of countries deemed non-compliant with anti-money laundering andterrorist financing regulations by theFATF, a measure that officials herefear could further hurt its economy.
A second team of experts from the FATF arrived over the weekend to reviewthe progress made by Pakistan on an action plan agreed in June to addressglobal concerns.
The delegation of the Asia Pacific Group (APG) of the FATF was notimpressed with the progress made by Pakistan so far as it found the legalframework insufficient, and the institutional arrangements weak.
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According to sources, the delegation feared that the setup installed forscrutinising the activities of non-profit organisations, brokerage houses,exchange companies and donations of corporate entities – registered underthe companies act – was not robust enough.
