FATF: Pakistan’s progress to be reviewed

The five-day virtual plenary of the Financial Action Task Force (FATF) has commenced in Paris, under which Pakistan’s measures in curbing money laundering and terror financing will be reviewed.

The Paris-based watchdog will take a decision on keeping Pakistan on its grey list after reviewing FATF Asia/Pacific Group (APG), observer group reports.

“Under the German Presidency of Dr Marcus Pleyer, delegates representing 205 members of the Global Network and observer organisations including the International Monetary Fund, the United Nations and the Egmont Group of Financial Intelligence Units will take part in the virtual meeting of the FATF Plenary,” read a FATF statement.

During five days, the plenary will discuss key issues to strengthen global action against the financial flows that fuel crime and terrorism.

Back in February, FATF decided to keep Pakistan on its ‘grey list’, giving it four more months – June 20, 2021 – to complete its full action plan.

FATF President Dr Marcus Pleyer at the time said that Pakistan has made progress across all action plan items and it has now largely addressed 24 out of 27 items of the action plan.

He said that Pakistan should continue to work on implementing the three remaining items in its action plan to address its strategically important deficiencies, namely by: (I) demonstrating that TF [terror financing] investigations and prosecutions target persons and entities acting on behalf or at the direction of the designated persons or entities: (2) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions: and (3) demonstrating effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists, specifically those acting for or on their behalf.

Money laundering: Pakistan moved to enhanced follow-up list by APG

Just weeks ago, the second follow-up Mutual Evaluation Report (MER) on Pakistan by the the Asia-Pacific Group (APG) on money laundering stated that overall, Pakistan has made notable progress in addressing the technical compliance deficiencies identified in its MER, Pakistan has been re-rated on 22 recommendations, and has been downgraded as non-compliant from partially compliant in one recommendation.

According to the APG report, Pakistan has 31 recommendations rated compliant or largely compliant (C/LC) and will move from enhanced (expedited) to enhanced follow-up, Pakistan will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures.

The outcomes of the FATF Plenary will be published on Friday 25 June, at the close of the meeting.