Pakistan prepares 11 outcomes to comply with FATF proposals

ISLAMABAD: To comply with 40 recommendations of Financial Action Task Force (FATF), Pakistan’s key institutions have come up with a comprehensive plan by devising 11 immediate outcomes for avoiding further down gradation through upcoming evaluation by the Asia and Pacific Group (APG) from next week.

A delegation of the APG is scheduled to visit Pakistan from August 13 and will stay here for one week in order to evaluate the country’s progress. Pakistan will have to show progress on FATF instructions and avoiding slipping from grey to blacklist.

A list of 11 immediate outcomes has been exclusively shared with The News by top officials of the government who conceded that all key stakeholders including the Ministry of Finance, FMU, SBP, Nacta, FIA and FBR’s Intelligence and Investigation will have to play important role during the next week’s visit of the APG to evaluate the performance so far made by Islamabad to comply with the FATF recommendations on account of combating money laundering and terror financing.

“We expect that the APG officials will stay in Pakistan for one week,” said the official, and added that it would be essential to satisfy the visiting delegation otherwise it would have serious consequences.

Few months back, one preparatory meeting was convened in Thailand and Pakistani delegation had to face severe criticism because it was believed China would be chairing the session, but at the last moment, India was given the chairing seat and in the meeting it was quite hard for Islamabad to defend its position on account of taking action against militant outfits. However, Pakistan has now made more preparation and it has relevant details to satisfy the delegation of the APG. With the consultation of all stakeholders, Pakistan has prepared 11 immediate outcomes to comply with the FATF demands.

Immediate outcome 1: Money laundering and terrorist financing risks are understood and, where appropriate, action must be coordinated domestically to combat money laundering and the financing of terrorism and proliferation.

Immediate outcome 2: International cooperation delivers appropriate information, financial intelligence and evidence, and facilitates action against criminal and their assets.

Immediate outcome 3: Supervisors appropriately supervise, monitor and regulate financial institutions for compliance with AML/CFT requirements commensurate with their risks.

Immediate outcome 4: Financial institutions and DNFBPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transaction.

Immediate outcome 5: Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing and information on their beneficial ownership is available to competent authorities without impediments.

Immediate outcome 6: Financial intelligence and all other relevant information are appropriately used by competent authorities for money laundering and terrorist financing investigations.

Immediate outcome 7: Money laundering offence and activities are investigated and offenders are prosecuted.

Immediate outcome 8: Proceeds and instrumentalities of crime are confiscated.

Immediate outcome 9: Terrorist financing offences and activities are investigated and persons who finance terrorism are prosecuted and subjected to effective, proportionate and dissuasive sanctions.

Immediate outcome 10: Terrorists, terrorist organisations and financiers are prevented from raising, moving and using funds, and form abusing the non-profit organisations (NPO) such as NGOs sector.

Immediate outcome 11: Persons and entities involved proliferations are prevented from raising, moving and using funds in accordance with the relevant United Nations Security Council resolutions.