*LAHORE: *After grey-listing Pakistan due to its ‘terror-financingdeficiencies’, Financial Action Task Force (FATF) on Friday gave a 10-pointaction plan, welcoming the high-level political commitment conveyed by thecountry.
After Plenary Meetings held in OECD, Paris, from June 24-29, 2018, todiscuss the issues relating to security and integrity of the globalfinancial system, FATF said it has “identified Pakistan as a jurisdictionwith strategic AML/CFT deficiencies”. The body has recommended an actionplan to address the issues regarding anti-money laundering andcounter-terror financing.
The action plan includes:
(1) Demonstrating that TF risks are properly identified, assessed, and thatsupervision is applied on a risk-sensitive basis
(2) Demonstrating that remedial actions and sanctions are applied in casesof AML/CFT violations, and that these actions have an effect on AML/CFTcompliance by financial institutions
(3) Demonstrating that competent authorities are cooperating and takingaction to identify and take enforcement action against illegal money orvalue transfer services (MVTS)
(4) Demonstrating that authorities are identifying cash couriers andenforcing controls on illicit movement of currency and understanding therisk of cash couriers being used for TF
(5) Improving inter-agency coordination including between provincial andfederal authorities on combating TF risks
(6) Demonstrating that law enforcement agencies (leas) are identifying andinvestigating the widest range of TF activity and that TF investigationsand prosecutions target designated persons and entities, and persons andentities acting on behalf or at the direction of the designated persons orentities
(7) Demonstrating that TF prosecutions result in effective, proportionateand dissuasive sanctions and enhancing the capacity and support forprosecutors and the judiciary
(8) Demonstrating effective implementation of targeted financial sanctions(supported by a comprehensive legal obligation) against all 1267 and 1373designated terrorists and those acting for or on their behalf, includingpreventing the raising and moving of funds, identifying and freezing assets(movable and immovable), and prohibiting access to funds and financialservices
(9) Demonstrating enforcement against TFS violations includingadministrative and criminal penalties and provincial and federalauthorities cooperating on enforcement cases
(10) Demonstrating that facilities and services owned or controlled bydesignated persons are deprived of their resources and the usage of theresources
The Pakistani delegation was led by caretaker Finance Minister Dr ShamshadAkhtar along with officials from Ministry of Finance, Ministry of ForeignAffairs, State Bank of Pakistan and Financial Monitoring Unit. On thesidelines of FATF and ICRG meetings, the Pakistani delegation heldbilateral meetings with several FATF members to ensure their support forPakistan in the FATF process. FATF members were informed that thegovernment already sent its commitment letter to the FATF President on thePolicy Action Plan on June 22, 2018.
A special intervention to FATF/ICRG was made by Dr Akhtar where sheemphasised that Pakistan was steadfast in upgrading the AML/CFT standardsand ensuring their enforcement. She reiterated Pakistan’s strong resolve tostrengthen its counter measures against terrorism and terrorism financing,and to implement the action plan by adopting a “whole-of-government”approach.
“This opportunity was instrumental in ensuring Pakistan’s commitment to theworld for compliance of international standards and increasingeffectiveness of regulatory and enforcement regimes for its own benefit,”she said.