The government has stated that there has been 220 percent increase in cash seizure and 300 percent increase in terrorist financing (TF) investigations whereas over 170 TF convictions have been made under the Financial Action Task Force (FATF) Action Plan.
This was stated in a FATF progress brief presented to the Senate Standing Committee on Finance. The committee was, however, told that the removal procedure from FATF review requires that a jurisdiction must substantially address all the components of its Action Plan. Once the FATF has determined that jurisdiction has done so, it will organize an on-site visit to confirm that the implementation of the necessary legal, regulatory and /or operational reforms is underway and there is necessary political commitment and institutional capacity to sustain implementation.
As per a brief submitted to the Senate Standing Committee on Finance, the government maintained that results achieved by Pakistan on FATF Action Plan included;(i) national money laundering terrorist financing (TF) risk assessment updated with particulate focus on TF risk; (ii) cancellation of 25,000 non-profit organizations (NPOs) licenses and categorization of 140 NPO as high risk under further scrutiny; (iii) 220 percent increase in cash seizure and 300 percent in terrorist financing investigation in the last year and over 700 TF investigations including 190 plus related to key entities of the concerns; (iv) over 170 terrorism convictions, an increase of over 300 percent and; (v) over 1,000 properties and assets of listed individuals/ entities seized and 34 plus TF investigations in relations to 150 properties.
As per FATF assessment, out 27 items, five are largely addressed, 17 are partially addressed while five are incomplete.
The committee was further informed that as per FATF assessment, Pakistan has largely addressed five of the 27 action items and Pakistan was urged to swiftly complete full action plan by February 2020. The Joint Group in its analysis indicated that only five of the 27 action items have been assessed as largely completed. However, their own analysis reflects significant progress made on 23 of 27 action items whereas there has been progress of varying degree under the remaining four. Under many of the remaining actions, the use of words such as continued evidence suggesting that Pakistan has evidenced that the action plan item has been largely addressed, in addition some of the actions reflects 'moving of the goal posts' indicating an additional requirement beyond scope of the action plan item, claimed FMU.
Using the FATF Action Plan and mutual evaluation report as stepping stone, Pakistan is committed to utilising this strategic opportunity to align the country with global financing system. Pakistan has formulated antenatal action plan to revamp legal, regulatory and supervisory frameworks and contours of the plan included; (i) legislative re-vamp in banking and financial system; (ii) institutional re-organization and capacity building; (iii) addressing enforcement, e-governance and financial challenges; (iv) and autonomy of regulatory framework and regimes while ensuring permanency of newly raised structure. Pakistan's efforts do not end here, rather by formulating an international action plan, Pakistan has set course to revamping the entire anti-money laundering/countering financing of terrorism (AML/CFT) regime with the strategic objective of re-aligning itself to the international financial system, stated that the document submitted to the committee.
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