Pakistan has low rating on 10 of 11 international goals ion anti-money laundering, terror financing

International

oi-Vicky Nanjappa

Islamabad,
Sep
14:
The
Asia-Pacific
Group
of
the
FATF,
a
global
watchdog
for
terror
financing
and
money
laundering,
has
rated
Pakistan’s
level
of
effectiveness
as
‘low’ on
10
out
of
11
international
goals
on
anti-money
laundering
and
combating
the
financing
of
terror,
a
media
report
said
on
Tuesday.

Asia-Pacific
Group
(APF),
the
Sydney-based
regional
affiliate
of
the
Financial
Action
Task
Force
(FATF),
released
an
update
as
of
September
2
on
the
rating
of
its
regional
members
suggesting
that
Pakistan
had
a
‘moderate
level
of
effectiveness’ on
only
one
out
of
11
outcomes,
reported
Dawn.

Under
this
‘immediate
outcome’,
Pakistan
extends
international
cooperation
on
appropriate
information,
financial
intelligence,
and
evidence
and
facilitates
action
against
criminals
and
their
assets,
news
agency
PTI
reported.

A
15-member
joint
delegation
of
FATF
and
APG
paid
an
onsite
visit
to
Pakistan
from
August
29
to
September
2
to
verify
the
country’s
compliance
with
a
34-point
action
plan
committed
with
FATF
at
the
highest
level
in
June
2018,
the
report
said.

Who
is
T
Raja
Kumar,
the
new
chief
of
global
terror
financing
watchdog
FATF?

The
task
force
had
found
Pakistan
compliant
or
largely
compliant
on
all
the
34
points
in
February
this
year
and
had
decided
to
field
an
onsite
mission
to
verify
it
on
the
ground
before
formally
announcing
the
country’s
exit
from
the
grey
list.

Under
the
FATF-APG
assessment
mechanism,
effective
ratings
on
“Immediate
Outcomes”
reflect
the
extent
to
which
a
country’s
measures
are
effective.

The
assessment
is
conducted
on
the
basis
of
11
immediate
outcomes,
which
represent
key
goals
that
an
effective
on
Anti-Money
Laundering
and
Combating
the
Financing
of
Terror
(AML/CFT)
system
should
achieve.

However,
this
has
no
direct
bearing
on
an
expected
exit
of
Pakistan
from
FATF’s
grey
list
during
its
October
18-22
plenary
in
Paris.

Last
month,
the
APG
had
described
Pakistan
as
‘compliant’ or
‘largely
compliant’
on
38
out
of
40
technical
recommendations
of
the
FATF
on
anti-money
laundering
and
combating
financing
of
terror.
It
had,
however,
retained
Islamabad
on
‘Enhanced
Follow-up’
until
further
progress
was
made
on
the
two
remaining
recommendations.

This
means
that
Pakistan
has
made
major
progress
on
FATF’s
technical
recommendations
to
qualify
to
be
moved
out
of
‘grey
list’,
but
it
is
still
far
behind
FATF’s
immediate
outcomes
on
effectiveness.

The
APG
noted
that
Pakistan
had
a
low
level
of
effectiveness
on
10
“Immediate
Outcomes
(IOs)”
under
international
standards
against
money
laundering
and
terror
financing.

The
first
IO
on
which
the
effectiveness
is
rated
as
moderate
is
that
money
laundering
and
terror-financing
are
understood
and,
where
appropriate,
actions
coordinated
domestically
to
combat
money
laundering
and
the
financing
of
terrorism
and
proliferation,
the
report
said.

Facing
heat
from
FATF,
26/11
planner
Sajid
Mir
who
was
a
myth
becomes
a
reality
in
Pakistan

There
are
nine
other
IOs
on
which
Pakistan
has
been
ranked
as
having
a
‘low
level
of
effectiveness.

Goal
7
&
8
require
that
ML
offences
and
activities
are
investigated
and
offenders
are
prosecuted
and
are
subject
to
effective,
proportionate
and
dissuasive
sanctions
are
taken
and
proceeds
and
instrumentalities
of
crime
are
confiscated.

Likewise,
target
9
&
10
demand
that
terror
financing
offences
and
activities
are
investigated
and
persons
who
finance
terrorism
are
prosecuted
and
are
subject
to
effective,
proportionate
and
dissuasive
sanctions
and
terrorists,
terrorist
organisations
and
terrorist
financiers
are
prevented
from
raising,
moving
and
using
funds,
and
from
abusing
the
non-profit
organisations
sector.

The
immediate
outcome
11
requires
that
persons
and
entities
involved
in
the
proliferation
of
weapons
of
mass
destruction
are
prevented
from
raising,
moving
and
using
funds,
consistent
with
the
relevant
United
Nations
Security
Council
resolutions,
according
to
the
Dawn
report.

FATF
retains
Pakistan
on
‘grey
list’
for
terror
funding
&
money
laundering

The
exit
from
the
FATF
grey
list
will
restore
Pakistan’s
image
and
give
confidence
to
foreign
investors
for
doing
ventures
in
the
country.
The
grey-listing
makes
it
hard
for
countries
to
do
financial
transactions
and
raises
the
cost
of
doing
business.

Pakistan’s
removal
from
the
grey
list
will
help
give
impetus
to
its
struggling
economy,
according
to
experts.