FATF (i.e. Financial Action Task Force) is a Paris-based inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF has currently 39 members and two regional organizations namely the European Commission and the Gulf Cooperation Council.
India is also a member of the FATF consultations and its Asia Pacific Group.
Now, FATF will review Pakistan's performance to meet the international commitments in the fight against terror financing in June during a meeting that is going to be held in China.
Currently, Pakistan has been placed on the FATF's 'grey list', Pakistan has already 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 as it could hurt its economy, which is already under a severe strain.
As we are aware of the global coronavirus pandemic, it is not yet clear if the meeting could be postponed as China is the epicenter.
In February, Pakistan has been given a four-month grace period by FATF to complete the 27-point action plan given by FATF against money laundering and terror financing committed with the international community when it noted that Pakistan had delivered on only 14 points and missed the other 13 targets.
A senior official of FATF said that Pakistan's performance would be reviewed to check if they should move Pakistan out of the grey list.
As per sources, Pakistan had put in place a broad strategy for taking necessary actions to complete the outstanding commitments with FATF in February and also actively making the progress.
FATF is strongly urging Pakistan to complete the full action plan by June 2020 or else they will move Pakistan to the blacklist (i.e. the list of monitored jurisdictions),
FATF also advised all its member nations to closely monitor all the transactions with Pakistan to prevent Terror Financing.
Pakistan should demonstrate that competent authorities are cooperating and also taking action to identify and take enforcement action against illegal money or value transfer services and also prove the implementation of the cross-border currency and also bearer negotiable instruments controls at all their ports of entry, also applying them effectively, proportionately and dissuasive sanctions.
It should also demonstrate that its law enforcement agencies are identifying and investigating the widest range of Terror Financing activity and these investigations and prosecutions are targetting designated persons and entities, and also those acting on behalf or at the direction of the designated persons or entities.
It will help Pakistan improve its Global reputation and position among other nations. So, Pakistan should follow these instructions and also complete the 27-point action plan as soon as practicable.
Tags : Pakistan, Blacklist, FATF, Greylist, review, China, June 2020