Pak­istan vows to ad­dress de­fi­cien­cies in AML com­pli­ance

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Pak­istan has vowed to ad­dress the strate­gic de­fi­cien­cies iden­ti­fied by the global fi­nan­cial sys­tem watch­dog in the coun­try’s com­pli­ance with the stan­dards of anti-money laun­der­ing (AML) and com­bat­ing the fi­nanc­ing of ter­ror­ism (CFT).

The Fi­nan­cial Ac­tion Task Force (FATF) said Pak­istan pro­vided “a writ­ten high-level po­lit­i­cal com­mit­ment to ad­dress the iden­ti­fied de­fi­cien­cies”.

“The FATF calls on [Pak­istan] to com­plete the im­ple­men­ta­tion of ac­tion plan ex­pe­di­tiously and within the pro­posed time­frame,” said the task­force that works to iden­tify the risks to the in­ter­na­tional fi­nan­cial sys­tem.

A Pak­istani del­e­ga­tion at­tended the FATF six-day ple­nary meet­ing, to sub­mit its ac­tion plan to curb money laun­der­ing and terror fi­nanc­ing. In Fe­bru­ary, the FATF de­cided to place the coun­try on its grey list, but Pak­istan man­aged to avert be­ing placed on the black list.

The coun­try was pre­vi­ously part of high risk ju­ris­dic­tions (black­list) in 2008 and 2012, while it was un­der ju­ris­dic­tions that were mak­ing suf­fi­cient progress (grey list) in 2010 and 2014. Pak­istan was re­moved from the grey list in 2015.

The FATF said it will closely mon­i­tor the im­ple­men­ta­tion of the ac­tion plan put for­ward by Pak­istan.

Pak­istan made a high-level po­lit­i­cal com­mit­ment to work with the FATF and its sub­group Asia Pa­cific Group to strengthen its AML/CFT regime and to ad­dress its strate­gic counter-ter­ror­ist fi­nanc­ing-re­lated de­fi­cien­cies.

The coun­try will demon­strate “that terror fi­nanc­ing risks are prop­erly iden­ti­fied, as­sessed and that su­per­vi­sion is ap­plied on a risk-sen­si­tive ba­sis”.

The coun­try is co­op­er­at­ing and tak­ing ac­tion to iden­tify and take en­force­ment ac­tion against il­le­gal money or value trans­fer ser­vices. It is iden­ti­fy­ing cash couri­ers and en­forc­ing con­trols on il­licit move­ment of cur­rency and un­der­stand­ing the risk of cash couri­ers be­ing used for terror fi­nanc­ing. Pak­istan vowed to ef­fec­tively im­ple­ment “tar­geted fi­nan­cial sanc­tions (sup­ported by a com­pre­hen­sive le­gal obli­ga­tion) against all 1267 and 1373 des­ig­nated ter­ror­ists and those act­ing for or on their be­half, in­clud­ing pre­vent­ing the rais­ing and mov­ing of funds, iden­ti­fy­ing and freez­ing as­sets (mov­able and im­mov­able), and pro­hibit­ing ac­cess to funds and fi­nan­cial ser­vices”.

The coun­try will strengthen en­force­ment against vi­o­la­tions of terror fi­nanc­ing ser­vices, in­clud­ing ad­min­is­tra­tive and crim­i­nal penal­ties and pro­vin­cial and fed­eral au­thor­i­ties co­op­er­at­ing on en­force­ment cases.

“The FATF con­tin­ues to iden­tify ad­di­tional ju­ris­dic­tions, on an on­go­ing ba­sis, that pose a risk to the in­ter­na­tional fi­nan­cial sys­tem,” FATF said.

“The FATF and the FATF-style re­gional bod­ies (FSRBs) will con­tinue to work with the ju­ris­dic­tions… and to re­port on the progress made in ad­dress­ing the iden­ti­fied de­fi­cien­cies.”

Cur­rently, FATF has of­fi­cially des­ig­nated 10 coun­tries un­der high-risk ju­ris­dic­tions (black­list) and ju­ris­dic­tions that are mak­ing suf­fi­cient progress (grey list).

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