ISLAMABAD: Well-placed sources said Pakistan will be facing tough time in the coming years as the delegation of Asia Pacific Group (APG)—a subsidiary of Financial Action Task Force (FATF) during its recent visit has rated Pakistan partially/non-compliant in 33 out of 40 recommendations.
Pakistan maintains that it has taken all the necessary measures to implement the FATF recommendations. But sources said the delegation was not satisfied with Pakistan’s response as reflected in the second draft of technical compliance report of the APG. They maintained that FATF was not happy with the timeliness of the Pakistani response.
Pakistan has to make significant progress to show compliance in these area by the mid of next year otherwise the FATF can put the country in black list. Iran and North Korea are the only two other countries on the FATF black list.
Arif Ahmed Khan, Secretary Finance while talking to The News on October 22, 2018 had confirmed that it is true the FATF has expressed its concerns on two key issues including recommendation No 8; however the government of Pakistan has time until September 2019 to show progress in compliance.
When asked whether Pakistan will meet the entire criterion set by the FATF particularly the two recommendations. The Secretary said, “They have set very stringent standards with regard to these two recommendations. Even if we meet their standards it will be up to them whether they recognise these measures or not”.
Talking about the repercussions if FATF puts Pakistan into black list, Siddiqui said, “Pakistan has already been in grey and black list but this time circumstances are different than the past due to some geopolitical situation. There will be some consequences for the financial sector of Pakistan.”
“They have asked why Pakistan has not issued any STR (suspicious transactions report) reports. We have replied them if there is no suspicious transactions then how could we issue STR report. We have never detected any suspicious transactions from any bank accounts in Pakistan then how can we issue any STR report if there is no violation of banking laws. We are hopeful that Pakistan will ensure compliance of the FATF recommendations and avoid the black list”, said the DG FMU.
Recommendation 1 - Assessing Risks and applying a Risk-Based Approach
Recommendation 2 – National Co-operation and Co-ordination
Recommendation 3 - Money laundering offence
Recommendation 4 - Confiscation and provisional measures
Recommendation 5 - Terrorist financing offence
Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing
Recommendation 7 – Targeted financial sanctions
Pakistan has been rated as non-compliant/ partially compliant as the country has not/ partly-met all the five criterion of this recommendation.
Pakistan is rated non-compliant as it missed to meet almost all the criterion.
Pakistan is rated compliant of recommendation 9.
Pakistan has partly met almost all 20 criterion of Recommendation 10 and rated as partially compliant.
Pakistan has mostly met all the four criterion of recommendation 11 and rated as partially compliant/largely compliant.
Pakistan has met with all four criterions and is rated as largely compliant of recommendation 12.
The government of Pakistan has met with all three criterions and rated as compliant of recommendation 13.
Pakistan has partly met with four out of five criterions and rated as partially compliant of recommendation 14.
Pakistan is partially compliant of recommendation 15.
Partially compliant as Pakistan has not met with a few out of 18 criterions of Recommendation 16.
It is yet to be decided about the compliance of recommendation 17.
Pakistan is rated as partially compliant as the country has partly met with two out of three criterions.
Pakistan has not met with one out of three criterions and rated as partially compliant of recommendation 19.
Rated as partially compliant as Pakistan has met one out of two criterions of recommendation 20.
Rated as largely compliant as Pakistan has met two criterions of recommendation 21.
Pakistan has not met with all five criterion of recommendation 22 and rated as non-compliant.
Rated as partially compliant as Pakistan has not met two out of four criterions of recommendation 23.
The government of Pakistan has met most of the criterions out of 14 and rated as partially compliant of recommendation 24.
Rated as partially compliant as Pakistan has not met four out of eight criterions of recommendation 25.
Pakistan has partially complied only one out of six criterions whereas the rating of remaining five criterions is yet to be decided hence the FATF has rated Pakistan as TBD (To Be Decided).
Rated as TBD as none out of three criterions of recommendation 27 have been given any rating so far.
The government of Pakistan has been rated as Non-Compliant as four out of five criterions of Recommendation 28 are not met.
Rated as Compliant as Pakistan has met all eight criterions of recommendation 29.
Pakistan has met only two out of five criterions whereas the remaining three are either not met or partly met hence rated as partially compliant.
Rated as partially compliant as Pakistan has not met with one out of four criterions whereas the remaining three are partly met.
Rated as partially compliant as Pakistan has partially/not met with seven out of 11 criterion of recommendation 32.
Pakistan is rated partially compliant of recommendation 33 as it has partially met with the only criterion of this recommendation.
Rated as partially compliant as Pakistan has partly met with the only criterion of this recommendation.
Rated as partially compliant as Pakistan partly met with two criterions of this recommendation.
Rated as partially compliant as Pakistan has partly met with the two criterions of this recommendation.
Rated as non/partially compliant as Pakistan has missed most of the criterions.
Rated as non-compliant as Pakistan has not met any of the criterion.
Rated as partially met.
Rated as non-compliant as Pakistan has missed most of the criterion of this recommendation.
