Govt approves terror financing risk assessment

ISLAMABAD: Government on Tuesday approved the terrorist financing risk assessment framework in a major move to comply with the global financial watchdog that is scheduled to meet next month to review the country’s endeavor to get out of its watch list of countries with flawed anti-money laundering system.

The high-powered National Executive Committee (NEC) approved the terrorist financing risk assessment prepared jointly by National Counter Terrorism Authority (Nacta) and the Federal Investigation Agency (FIA) in consultation with a number of relevant authorities. The decision was taken at a meeting presided over by the Finance Minister Asad Umar.

The NEC also approved the risk assessment report on cash smuggling prepared by the customs department.

A top official told The News that the NEC approved the terrorist financing risk assessment in principle and “directed the authorities to incorporate certain observations in it in order to strengthen the country’s strategy to move ahead with iron hand (against terrorist financing)”. In February, the Financial Action Task Force (FATF) put Pakistan into the grey list of countries that have some lacking to control money laundering and counter terrorist financing. The country has a timeline till October next year to come out of the list or avert being black-listed if the measures it would take couldn’t satisfy the FATF’s team.

Officials said the FATF’s next plenary session is scheduled to meet from January 8 to 10 next year in Sydney in which Pakistan’s compliance report on 27 immediate outcomes would be reviewed.

The officials said the FATF’s review in May 2019 could prove quite critical for Pakistan as the country would have to demonstrate compliance with regards to effective enforcement, prosecution against terror networks and foiling their financial linkages.

“PM (Prime Minister) Imran Khan has given instructions to all the law enforcing agencies to put their act together and move ahead against money launderers and terror financers with iron hands,” a minister told this scribe, requesting anonymity. “The PM has to personally involve because the concerned ministries and departments are showing lacklustre attitude.”

The meeting reviewed the progress on FATF action plan. The Nacta made a detailed presentation on the terrorist financing risk assessment. “After detailed deliberations on various aspects of the assessment report, the NEC approved the same subject to addressing certain observations in respect of key policy and legislative areas,” the finance ministry said in a statement. “Nacta will finalise the report accordingly.”

The financial monitoring unit (FMU) presented the analysis on suspicious transaction reports filed by the financial sector in the last three years and the law enforcement actions taken against money laundering and terrorism financing on the basis of such reports. “The NEC advised the authorities concerned to enhance enforcement actions and adopt a result oriented approach,” the ministry said. “The Chairman NEC advised all the departmental heads to regularly monitor timely implementation of the FATF action plan. The need for a coordinated effort with the provinces was also highlighted.”