FATF’s Meeting: Pakistan Seeks Exit From Grey List


FATF’s meeting: Pakistan seeks exit from grey list

The international body considers Pakistan’s efforts for compliance report against money laundering and financing of terrorism.

PARIS: (UrduPoint/Pakistan Point News-14th Oct, 2019) Pakistan has sought exit from the grey list of Financial Action Task Force (FATF) as the international body is going to examine compliance report of its 40 recommendations regarding Anti-Money Laundering and Combating Financing of Terrorism.

According to media reports, FATF said: “However, Pakistan is partially compliant on 26 and largely compliant on nine recommendations,” acknowledging Pakistan’s efforts for compliance that appropriate progress has been shown since Oct 2018.

Pakistan’s delegation led by Ministry for Foreign Economic Affairs Division Hammad Azhar arrived in Paris, France, to take part in the meeting of Financial Action Task Force that was scheduled for to examine Pakistan’s compliance report on its 40 recommendations for Anti-Money Laundering and Combating Financing of Terrorism.

Pakistan may exist the grey list if it succeeded in satisfying the international body regarding measures taken against the money laundering and financing of terrorism.

On Oct 02, Asia-Pacific Group (APG) which is a regional affiliate of the FATF , issued a report saying that out of the 40 recommendations, Pakistan just showed compliance in one, Financial Institutions Secrecy Law, and showed non-compliance in four areas.

Among many other measures, Pakistan effectively showed compliance with one of strong condition by taking steps for curbing black money in the real estate sector. Now the government is going to establish a ‘Real Estate Regulatory Authority’ to restrict black money in the sector.

The reports suggested that the Security and Exchange Commission of Pakistan prepared an initial draft about establishment of the authority in accordance with standards of the FATF.

Following the recommendations of FATF, Pakistan has to ensure that no property or land will be transferred to any terrorist or banned outfit. However, matters pertaining to taxation on the real estate sector are still excluded from the scope of the authority. The Federal government will support the formation of the Real Estate Regulatory Authority that will make all businesses involved in Real Estate business to register themselves with the authority. SECP finalized an important report showing that it has found 219 Suspicious Transactions Reports (STRs) in period of just one year as compared to just 13 STRs in last eight years. The SECP also developed a set of regulations regarding Anti-Money Laundering and Combating Financing of Terrorism in order to comply with the standards set by FATF. The Commission also hired the services of 167 inspectors to ensure implementation on recommendations of FATA to stop money laundering and financing of terrorism.

Pakistan has made significant improvements in its system to fight against money laundering and terror financing to meet the international standards.

It may be mentioned here that Prime Minister Imran Khan in an interview to an international tv channel alleged that India was trying to bankrupt Pakistan and push it into the FATF blacklist.

Fida Hussnain

Fida Hussnain is a lahore based journalist. He writes on politics, religion, social issues and climate change. He is also a research fellow at University of Gujrat.