FATF to review Pak efforts to curb terror in June meet
IN FEBRUARY, THE FATF GAVE PAKISTAN A FOURMONTH GRACE PERIOD TO COMPLETE ITS 27POINT ACTION PLAN AGAINST MONEY LAUNDERING AND TERROR FINANCING
ISLAMABAD: Global anti-money laundering watchdog FATF will review Pakistan’s performance to meet international commitments in the fight against terror financing during a meeting scheduled to be held in China in June.
Paris-based Financial Action Task Force (FATF) is an intergovernmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Currently placed on the FATF’S ‘grey list’, Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations, a measure that officials here fear could hurt its economy, which is already under severe strain.
The global watchdog will review Pakistan’s performance to meet international commitments and standards in the fight against money laundering and terror financing at its meeting slated to be held in Beijing on June 21-26, Dawn news reported.
It is not yet clear if the meeting could be postponed due to the global coronavirus pandemic which broke out in central
China’s Wuhan city.
In February, the FATF gave Pakistan a four-month grace period to complete its 27-point action plan against money laundering and terror financing committed with the international community when it noted that Pakistan had delivered on 14 points and missed 13 other targets.
A senior government official said Pakistan’s performance would be reviewed at the joint working group meetings of the FATF and Eurasian Group scheduled in Beijing and the assessment would lead to final announcement in October this year if Pakistan should move out of the grey list.
He said certain action points were yet to be complied with the commitments mainly because of ongoing coronavirus lockdowns.
The FATF announced on February 21 that all deadlines given to Pakistan to complete the 27-point action plan had expired and yet only 14 items had largely been completed, leaving 13 unaccomplished targets.
It strongly urged Pakistan to complete its full action plan by June 2020 or else it would be moved to the list of monitored jurisdictions, commonly known as blacklist.
“Otherwise, should significant and sustainable progress especially in prosecuting and penalising TF (Terrorist Financing) not be made by the next Plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdiction to advise their Financial Institutions (FIS) to give special attention to business relations and transactions with Pakistan,” t he FATF s ai d i n a f ormal announcement in February.
The FATF had noted “recent and notable improvements” but “again expresses concerns given Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the TF risks emanating from the jurisdiction”.
Pakistan has to show compliance with 13 remaining action points in eight key categories. The country has to demonstrate that remedial actions and sanctions are applied in cases of Anti- Money Laundering and Countering Financing of Terrorism Act violations, relating to TF risk management and Terror Financing Sanctions obligations.