PARIS: Financial Action Task Force (FATF) on Monday examined the compliance report of Pakistan at its meeting held in the French capital and appreciated the country’s efforts against terrorism and corruption, sources said.
It also expressed satisfaction over risk assessment study of Pakistan, as brotherly countries including China, Turkey and Malaysia supported Pakistan’s stance.
The Pakistani delegation gave satisfactory answers to all the questions of FATF as well as satisfying Indian members on questions about terror outfits. The delegation presented a report at the meeting where question-answer session would continue further.
Pakistan, among many other measures, has effectively complied with one of strong conditions put forward by the Asia-Pacific Group (APG) — a regional affiliate of the FATF — to implement measures for curbing black money in the real estate sector.
Pakistan has undertaken a plan to establish a “Real Estate Regulatory Authority” to restrict black money in the sector. The Security and Exchange Commission of Pakistan (SECP) prepared an initial draft for the establishment of the authority in accordance with the standards of the FATF.
The country will ensure that lands and properties are not transferred in the name of any terrorist organisations or banned outfits. However, matters pertaining to taxation on the real estate sector are excluded from the scope of the authority.
Moreover, federal institutions will support the formation of the Real Estate Regulatory Authority that will make it mandatory for businessmen who are involved in the real estate businesses to register themselves with the authority and essential documentation of the businesses will follow.
Importantly, a report finalised by the SECP mentioned that the comprehensive guideline developed by the commission has helped financial institutions to generate 219 suspicious transactions reports (STRs) in just one year, as compared to 13 STRs in eight years.
In order to comply with the FATF’s standards, it has developed a set of regulations—“SECP AML/CFT Regulations”—in June 2018. Furthermore, it has conducted 167 inspections, focusing on AML/CFT compliance in the cases of 72 securities brokers, 27 non-banking financial companies, 13 insurance companies and 55 high risk non-profit organisations.
This year, Pakistan has made significant improvements in its systems to fight money laundering and terror financing as per international standards.