ISLAMABAD: In a bid to finalise Pakistan’s compliance report for submission in the upcoming review meeting of the Financial Action Task Force (FATF) next month, the high-powered National Executive Committee (NEC) will take up approval of Terrorism Financing Risk Assessment Report in its scheduled meeting today (Tuesday).
The exercise is aimed at saving Pakistan from slipping into the blacklist. Pakistan is struggling to come out of grey to green list.
The FATF can put the country into blacklist anytime if it found the progress unsatisfactory on 27 actionable plans till September 2019.
Out of 27 immediate outcomes (IOs) placed by the FATF to review Pakistan’s progress on money laundering and terror financing, Islamabad has made some progress on around 40 percent of placed IOs but there is unsatisfactory or very little progress on 60 percent IOs, especially on the terrorist financing front.
The Financial Monitoring Unit (FMU) remains unable to develop a National Risk Assessment (NRA) report for covering all aspects in consultation with more than 11 ministries, departments, law enforcing agencies, provinces and their respective departments to align legislation, action plan, prosecution and achieving the ultimate objectives to comply with United Nations Security Council Resolution (UNSCR) numbers 1267 and 1373.
So far, only Nacta and FBR’s customs department have prepared risk assessment reports.
Headed by DG Syed Mansoor Ali, the FMU’s performance needs to be improved for ensuring delivery on all 27 IOs by September 2019 in order to come out of the grey list.
The high-powered NEC is scheduled to meet today (Tuesday) under chairmanship of Minister for Finance Asad Umar.
The committee comprises Minister for Foreign Affairs Shah Mehmood Qureshi, Minister for Law and Justice Farogh Naseem and Minister of State for Interior Shahryar Afridi.
Governor State Bank of Pakistan, head of Nacta, director general FIA and others will participate in the meeting.
The NEC will take up a five-point agenda including review and approval of Terrorism Financing Risk Assessment report on which the Nacta’s head will give an extensive briefing, review and approval of sectoral risk assessment report on cash couriers going to be presented by the FBR, review of progress on FATF Action Plan, review of report on actions taken by Law Enforcing Agencies (LEAs) and Regulations on FMU’s referral on Suspicious Transaction Reports (STRs) and any other agenda item in today’s meeting.
“The FATF plenary session has been re-scheduled and now it is slated for January 8 to 10 at Sydney in which Pakistan’s compliance report on 27 immediate outcomes will be reviewed,” top official sources confirmed to The News on Monday.
They seemed confident that the upcoming review meeting would not bring any negative outcome for the country.
However, one top minister told The News that the FATF’s review in May 2019 could prove quite critical for Pakistan, as they would have to demonstrate compliance on front of ensuring effective enforcement and prosecution against terror networks and foiling their financial linkages.
“PM Imran Khan has instructed all the law enforcing agencies (LEAs) to put their act together and move ahead against money launderers and terror financers with an iron hand,” said the minister confided in The News.
He said the prime minister was involved on the FATF conditions because the ministries and departments concerned were showing a lackluster attitude towards complying with the conditions which impact the country seriously.
Earlier, the FATF raised concerns over pervasive corruption in Pakistan. In addition to constituting a significant Money Laundering (ML) risk, this situation creates structural weaknesses which may impede the effectiveness of AML/CFT regime in Pakistan.