PARIS: Pakistan failed to avoid the grey list and the Financial Action Task Force (FATF) given another six-point plan on money laundering to be addressed before next plenary meeting scheduled in October.
Addressing a press conference after the June 21-25 plenary meeting concluded in Paris, FATF President Dr Marcus Pleyer said that Pakistan remains under “increased monitoring”.
Though the FATF stated that it recognizes Pakistan’s progress and efforts to address items in its country action plan that pertain to combating financing of terrorism and has encouraged it to continue progress and address as soon as possible “the one remaining CFT-related item”.
It has also handed the government six new anti-money laundering areas to work on.
“The Pakistani government has made substantial progress in making its counter-terrorist financing systems stronger and more effective. It has largely addressed 26 out of 27 items on the action plan it first committed to in June 2018,” President FATF maintained.
Dr Pleyer said that the plan focused on terror financing issues. One key action item still needs to be completed “which concerns the investigation and prosecution of senior leaders and commanders of UN designated terror groups”, he added.
The FATF president highlighted that Pakistan has “made improvements” after the Asia Pacific Group highlighted issues in 2019 during its assessment of Pakistan’s entire anti-money laundering and counter terrorist financing system.
“These include clear efforts to raise awareness in the private sector to Pakistan’s money laundering risks and to develop and use financial intelligence to build case.
“However Pakistan is still failing to effectively implement the global FATF standards across a number of areas. This means the risks of money laundering remain high which in turn can fuel corruption and organized crime,” he said.
Dr Player said that this is why the FATF has worked with the Pakistan government on new areas that still need to be improved as part of a new action plan that largely focuses on money laundering risks.
This includes increasing the number of investigations and prosecutions and making sure law enforcement agencies cooperate internationally to trace, freeze and confiscate assets, he said.
“This is about helping authorities stop corruption and prevent organised criminals from profiting from their crimes and undermining the financial system and legitimate economy in Pakistan,” Dr Pleyer added.
The FATF during recent meeting outlined six areas where Pakistan should continue to work to address its strategically important AML/CFT deficiencies:
(1) enhancing international cooperation by amending the MLA (Mututal Legal Assistance) law;
(2) demonstrating that assistance is being sought from foreign countries in implementing UNSCR 1373 designations;
(3) demonstrating that supervisors are conducting both on-site and off-site supervision commensurate with specific risks associated with DNFBPs (Designated Non-Financial Business and Professions), including applying appropriate sanctions where necessary;
(4) demonstrating that proportionate and dissuasive sanctions are applied consistently to all legal persons and legal arrangements for non-compliance with beneficial ownership requirements;
(5) demonstrating an increase in ML (money laundering) investigations and prosecutions and that proceeds of crime continue to be restrained and confiscated in line with Pakistan’s risk profile, including working with foreign counterparts to trace, freeze, and confiscate assets; and
(6) demonstrating that DNFBPs (Designated Non-Financial Business and Professions) are being monitored for compliance with proliferation financing requirements and that sanctions are being imposed for non-compliance.
The President went on to say he wishes to “thank the Pakistani government for their continued strong commitment to this progress”.
The FATF president said substantial progress has already been made “and I know the authorities will continue to work to make the necessary changes”.
The next plenary meeting is due to take place in October.
Responding to a question over whether it would prove discouraging for other countries that “despite unprecedented progress”, Pakistan was still placed on the grey list, he said: “Our rules and procedures are very clear — all deficiencies must be addressed.”
Dr Pleyer said an earlier exit “would be also discouraging for other countries that had fully completed the action plan and then got off the list”.
“The expectation is clear, we treat all countries equally.”
On the recent events of uranium theft in India and whether FATF would take action, he said: “I am aware of the media reports, but I am not going to comment on something we haven’t assessed. The FATF assesses countries on AML frameworks and comments on the strength of their systems following an assessment.”
Speaking about mutual evaluations for India, he said there is a clear schedule for all the countries and due to COVID-19, the evaluations were delayed, but as soon as the COVID-19 situation improves, the mutual evaluation will be done for India.
Read more: With compliance on 26 points, no justification to keep Pakistan in FATF’s grey list:…
