FATF Meeting: India’s effort against Pakistan

by Nadia Riaz on October 14, 2019 | Images Source Social Media

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Financial Action Task Force (FATF) has checked the conformity report of Pakistan in its meeting held in Paris. FATF has given a positive gesture towards the risk assessment study of Pakistan and brotherly countries including China, Turkey and Malaysia have supported stance of Pakistan.

Federal Minister for Economic Affairs Hammad Azhar is leading Pakistani delegation that will have formal talks with the global body. Counselors from more than 200 countries and organizations are participating in the meeting that will continue till 18 October.

IF FATF is satisfied with the steps taken by Pakistan, the initiative steps can be taken to remove it from the grey list. In other case to put Pakistan in blacklist the body may consider steps.

However, the country hopes that with the support of friendly countries, Pakistan will manage to avoid being blacklisted and would more likely stay in the grey list.

The Security and Exchange Commission of Pakistan (SECP) prepared an initial report the establishment of the authority in accordance with the standards of the FATF.

The country will ensure that lands and properties are not transferred in the name of any terrorist organizations or banned outfit. However taxation on the real estate sector are excluded from the scope of the authority.

The APG released its Mutual Evaluation report days before the FATF’s plenary meeting. After the APG report, chances are high that Pakistan would be retained on the grey list during the FATF plenary.

On the other hand Pakistan faces indicative risk of terror financing both from legitimate and illegitimate sources as well as weak or no, rules and supervision of certain sectors such as hundi, NPOs and DNFBPs (Designated Non-Financial Businesses and Professions) and porous borders, according to the report.

As a result, now Pakistan is consider to be responsible for submitting the progress reports on quarterly basis rather biannual, to the APG, starting Feb 1, 2020 to show improvements in its technical standards on AML/CFT.



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Nadia Riaz



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