Minister for expediting efforts for FATF plan

ISLAMABAD: Finance Minister Hafeez Shaikh on Monday urged officials to expedite efforts for fulfilling requirements in a few remaining areas of the Financial Action Task Force (FATF) plan.

“The strict adherence to timelines will culminate into successful completion of the FATF action plan,” Shaikh said during a meeting.

The minister commended the efforts made by the National Executive Committee, under the chairmanship of the Minister for Industries and Production Hammad Azhar, in achieving major milestones with reference to 27-point FATF Action Plan.

“The unity of purpose, team work and meticulous coordination among various ministries and departments concerned have brought Pakistan closer to achieving the target of completing FATF action plan despite enormous challenges,” he said.

Pakistan recently got an extension in timeline to meet three of the 27 recommendations related to curb money laundering and terrorists financing to get out of the FATF’s grey list. The country had been placed on the grey list in June 2018 and was given a plan of action to complete or face the risk of being placed on the watchdog's blacklist, along with Iran and North Korea.

Countries that are identified as having deficiencies in their financial system are placed on grey list, while countries that are not making sufficient progress in addressing the deficiencies or have not committed to an action plan are moved to blacklist and termed as high risk jurisdictions (public statement-call for action).

The meeting was briefed on overall progress achieved on the FATF action plan and outlined efforts underway for the remaining targets to be achieved in due course of time. Pakistan has received international recognition and support for making strides vis-à-vis an exigent action plan given by the FATF, it was told.

Pakistan came on the watch list of the global financial system’s watchdog after the country managed to avert being blacklisted on failure to control money laundering and terrorists financing.

FATF, an inter-governmental body, formed to coordinate efforts on AML/CFT, issued a set of 40 recommendations, which serve as international standards for combating money laundering and terrorist financing.

Pakistan is a member of Asian Pacific Group, a FATF-styled regional body, and required to adopt FATF standards as per membership obligations, and also to comply with the United Nations resolutions.