FAFT team unhappy with Pak's efforts to combat terror

ISLAMABAD: Not impressed with Pakistan's efforts to combat terror financing, a delegation of the Financial Action Task Force (FATF) has asked it to do more to make stronger its prison framework if it needs to keep away from being blacklisted by the Paris-based anti-money laundering watchdog, according to a media file on Thursday.

Currently placed on the FATF'S 'gray checklist', Pakistan has been scrambling in fresh months to keep away from being added to a list of nations deemed non-compliant with anti-money laundering and terrorist financing rules by the FATF, a measure that officers here fear may further harm its financial system.

A 2nd team of professionals from the FATF arrived over the weekend to review the progress made by Pakistan on an motion plan agreed in June to handle global concerns.

Dawn reported that the delegation of the Asia Pacific Group (APG) of the FATF was once not impressed with the progress made by Pakistan as far as it found the prison framework insufficient, and the institutional preparations vulnerable.

According to assets, the delegation feared that the setup installed for scrutinising the actions of non-profit organisations, brokerage homes, change corporations and donations of corporate entities - registered below the firms act - was once not powerful sufficient.

The assets said that the APG believed that even in spaces the place the prison framework appeared lively, the implementation mechanism was once not geared to trace down monetary flows of the entities in query, because the agencies concerned were not well-connected, according to the file.

This weakness was once prominent in actual property brokerages the place huge industry transactions remained outdoor the ambit of prison records.

A team of the Securities & Exchange Commission of Pakistan (SECP) reported to the APG that brokerage homes had been in large part documented though actual property dealers and their operations had been normally outdoor its house of regulation.

The APG additionally noticed shortcomings in commodity trading - and the effectiveness of rules towards money laundering through cross-verification of provider providers.

The assets said the delegation asked the relevant authorities to issue closing dates for resolving the flagged weaknesses in order that the problems may well be remedied and future performance reviews be made on the proposed matrix.

The authorities would also have to correctly report the choice of donation containers placed by spiritual and different organisations at restaurants and industry centres among different puts. Besides, all forex and actual property dealers would have to report each transaction - both small and large.

The function of the mutual analysis seek advice from is to evaluate the effectiveness of Pakistan's Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regime below FATF methodology.

The visiting team incorporated Ian Collins of the United Kingdom's Scotland Yard, James Prussing of the United States Department of the Treasury, Ashraf Abdullah of the Financial Intelligence Unit of the Maldives, Bobby Wahyu Hernawan of the Indonesian Ministry of Finance, Gong Jingyan of the Peoples Bank of China and Mustafa Necmeddin Oztop of the Turkish Ministry of Justice.

In June, Pakistan made a high-level political commitment to work with the FATF and the APG to make stronger its AML/CFT regime and to handle its strategic counter-terrorism financing-related deficiencies by imposing a 10-point motion plan.

The successful implementation of the plan and its verification by the APG is a prerequisite for the FATF to remove Pakistan from its gray checklist.


Earlier in August, the APG - as a part of the mutual analysis -identified a sequence of deficiencies in Pakistan's AML/CFT mechanisms. By the end of September subsequent year, Pakistan will have to comply with the 10-point motion plan it dedicated to with the FATF or else it is going to fall into the black checklist.


The authorities are required to upgrade agencies and their human resource assets to be able to deal with foreign requests to dam terror financing and freeze illegal assets. The authorities are operating on strengthening rules for extradition of those considering terror financing and money laundering on requests from FATF-member countries.


By January subsequent year, Pakistan will identify and assess home and international terror financing dangers to and from its machine to make stronger investigations and give a boost to inter-agency cooperation, the Federal Investigation Agency, the State Bank of Pakistan, the SECP, banks, the internal department as well as all different related federal and provincial agencies, the file said.



FAFT team unhappy with Pak's efforts to combat terror FAFT team unhappy with Pak's efforts to combat terror Reviewed by kailash soni on October 11, 2018 Rating: 5
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