-Gives new six-point action plan on money laundering
-Six new areas, largely pertaining to money laundering risks
-Thanks to the Pakistani government for continued strong commitment to this progress
-Keeps Pakistan on gray list till October
DM Monitoring
PARIS: The Financial Action Task Force has said that it recognizes Pakistan’s progress and efforts to address items in its country action plan that pertain to combating financing of terrorism and has encouraged it to continue progress and address as soon as possible “the one remaining CFT-related item”.
It has also handed the government six new anti-money laundering areas to work on.
Addressing a press conference after the June 21-25 plenary meeting concluded in Paris, FATF President Dr Marcus Pleyer said that Pakistan remains under “increased monitoring”.
“The Pakistani government has made substantial progress in making its counter-terrorist financing systems stronger and more effective. It has largely addressed 26 out of 27 items on the action plan it first committed to in June 2018,” he said. Dr Pleyer said that the plan focused on terrorist financing issues. He said that the one key action item still needs to be completed “which concerns the investigation and prosecution of senior leaders and commanders of UN designated terror groups”.
The FATF president highlighted that Pakistan has “made improvements” after the Asia Pacific Group highlighted issues in 2019 during its assessment of Pakistan’s entire anti-money laundering and counter terrorist financing system.
“These include clear efforts to raise awareness in the private sector to Pakistan’s money laundering risks and to develop and use financial intelligence to build case.
“However Pakistan is still failing to effectively implement the global FATF standards across a number of areas. This means the risks of money laundering remain high which in turn can fuel corruption and organised crime,” he said.
The FATF outlined six areas where Pakistan should continue to work to address its strategically important AML/CFT deficiencies:
(1) enhancing international cooperation by amending the MLA (Mututal Legal Assistance) law;
(2) demonstrating that assistance is being sought from foreign countries in implementing UNSCR 1373 designations;
(3) demonstrating that supervisors are conducting both on-site and off-site supervision commensurate with specific risks associated with DNFBPs (Designated Non-Financial Business and Professions), including applying appropriate sanctions where necessary;
(4) demonstrating that proportionate and dissuasive sanctions are applied consistently to all legal persons and legal arrangements for non-compliance with beneficial ownership requirements;
(5) demonstrating an increase in ML (money laundering) investigations and prosecutions and that proceeds of crime continue to be restrained and confiscated in line with Pakistan’s risk profile, including working with foreign counterparts to trace, freeze, and confiscate assets; and
(6) demonstrating that DNFBPs (Designated Non-Financial Business and Professions) are being monitored for compliance with proliferation financing requirements and that sanctions are being imposed for non-compliance.
