FATF requirements: Pakistan to form new institutions, say sources

ISLAMABAD: The federal government decided to form new institutions to meet the Financial Action Task Force's (FATF) requirements, sources said on Monday.

In preparation for the report to be presented at the FATF meeting in the third week of June, work has begun on amendments to the Anti-Money Laundering Act and anti-terrorist financing laws. It is pertinent to mention the federal cabinet had approved the amendments.

The National Counter-Terrorism Authority, Interior Ministry, Law Ministry, Federal Board of Revenue, and Finance Ministry are working to bring amendments to these laws.

Following the amendments, the cases of anti-money laundering and counter-terrorism financing will be investigated by specialised agencies. The specialised institutions would work with FBR, FMU, NACTA, FIA, ANF, NAB, and provincial anti-corruption departments, sources said. Dozens of special public prosecutors will be appointed in these institutions.

Under the new rules, money laundering cases would be transferred to specialised institutions, while an integrated system would be set up for the recovery of assets seized under terror financing and suspicious remittances.

All investigative agencies will be obliged to share intelligence, sources said. The report on changes in these laws and the implementation of three more points will be submitted to the FATF. In the light of these reports, the FATF will decide whether or not to remove Pakistan’s name from the grey list.