ISLAMABAD: the govt will need to pass amendments into Anti concealment (AML) and exchange Regulation laws within the next three months from the Parliament for complying with the Financial Action Task Force (FATF) conditions.
The FATF has extended deadline for Pakistan till next plenary meeting expected to be held in October 2020, official sources confirmed to The News here on Wednesday. The official sources said that after the tragic demise of DG Financial Monitoring Unit (FMU) Mansoor Hassan Siddiqui a few months back, the post was fallen vacant but now the govt appointed Lubna Farooq Malik, executive SBP, as DG FMU. The notification of her appointment has been issued but she has not joined her new post.
There was a proposal on eve of the budget-making process for 2020-21 to include some amendments associated with the Anti Terrorism Act (ATA) and AML as a part of the Finance Bill but it had been rejected and decided that the separate legislation would be pursued to hunt approval of Parliament. the govt had proposed some changes into nonprofit organizations (NPOs) and trusts associated with tax laws to suits the FATF requirements.
When contacted, the Finance Ministry high-ups said that the FATF extended the deadline for compliance reports until October 2020. the govt is functioning on bringing these changes into different laws and therefore the pending legislation bills would be pursued vigorously. The FATF had placed Pakistan on the grey list in June 2018 and placed 27 conditions for review for complying in one year, till Sept 2019. Pakistan was thus far given three extensions of three months each, whenever to suits 27-point action plans. Out of the 27-point action plan, the FATF had thus far declared Pakistan fully compliant on 14 points and now there's a deadline of September/October 2020 for complying on the remaining 13 points during a bid to make the sure exit from the grey list of the watchdog.
According to the list of remaining 13 points of 27 action plan (1) Pakistan will need to demonstrate effectiveness of sanctions including remedial actions to curb terrorist financing within the country; (2) Pakistan will need to ensure improved effectiveness for terror financing of monetary institutions with particular to banned outfits; (3) Pakistan will need to take actions against illegal money or value transfer services (MVTS) like hundi-hawala; (4) Pakistan will need to place sanction regime against cash couriers; (5) Pakistan will need to ensure logical conclusion from ongoing terror financing investigation of law enforcing agencies (LEAs) against banned outfits and proscribed persons; (6) Pakistani authorities will need to ensure international cooperation based investigations and convictions against banned organisations (list provided to Pakistan) and proscribed persons (list provided to Pakistan); (7) The country will need to place effective domestic cooperation between Financial Monitoring Unit (FMU) and LEAs in investigation of terror financing; (8) Prosecution of banned outfits and proscribed persons (list provided to Pakistan); (9) Demonstrate convictions from court of law of banned outfits and proscribed persons (list provided to Pakistan); (10) Seizure of properties of banned outfits and proscribed persons (list provided to Pakistan); (11) Conversion of madrassas to colleges and health units into official formations (list provided to Pakistan); (12) to chop off funding of banned outfits and proscribed persons; and (13) Pakistan will need to place permanent mechanism for management of properties and assets owned by the banned outfits and proscribed persons (list provided to Pakistan).
Minister for Industries Hammad Azhar in his budget speech on June 12 stated that in June 2018 Pakistan was placed under a grey list and was required to suits 27 Actionable Points. Our government has put in unprecedented efforts in the least levels to enhance its AML/CFT regime to satisfy the wants of the FATF Action Plan. during this regard, he said that he has been entrusted with the responsibility of the National FATF Coordination Committee. A comprehensive process of legislative, technical, and operational improvements has been initiated. Significant results are achieved within the areas of monetary sector supervision, investigations, prosecutions, and international cooperation,” he said.
Resultantly, he said, “We have progressed significantly on 27 actionable items included within the FATF Action Plan. Within 1 year, 14 items are largely addressed and 11 partially addressed whereas, in two areas, concerted efforts are being made for implementation.”
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