Fearing financial sanctions: government decides to tighten terrorism financing laws

The government has decided to make laws relating to terrorism financing more stringent, fearing any delay in this regard will lead to financial sanctions on Pakistan, sources close to Interior Minister Rehman Malik told Business Recorder.
Financial Action Task Force (FATF), which is an apex body that sets and monitors the international standard on Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) has already blacklisted Pakistan because of lacunae in terrorist financing laws.
"New provisions on freezing, seizing and forfeiture of property involved in the terrorism financing offence have been strengthened to ensure that the funding for terrorism financing is detected and seized after due process of law," the sources added.
Pakistan''s regime on AML and CFT was jointly evaluated by the World Bank and the Asia Pacific Group in 2009, giving several recommendations to make them more effective. Accordingly Pakistan took a number of steps to reform its domestic laws and make enforcement of AML/CFT since 2009 foolproof.
In February 2008, sources said, Pakistan was placed by FATF in its Public Statement (commonly known as ''black list'') due to inadequate progress to address AML/ CFT deficiencies. In June 2010, Pakistan committed an action plan on AML/ CFT reforms with FATF and it removed Pakistan from the Public Statement. However, in February this year, FATF reviewed Pakistan''s progress and placed it again in its Public Statement on account of deficiencies in terrorist financing laws and enforcement.
Subsequently, a working group was constituted to draft the required amendments in the Anti-Terrorism Act, 1997 to comply with international standards. The Anti-terrorism (Amendment) Bill, 2012 has been drafted and vetted by the Ministry of Law and Justice.
The sources said the bill aims at addressing shortcomings relating to the terrorism financing provisions in the Anti-terrorism Act, 1997. In particular, the Bill strengthens the provisions creating the offence of terrorism financing; covering all aspects of the offence in the light of international standards and provides for more effective measures for law enforcement agencies to investigate the offences.
The provisions on freezing, seizing and forfeiture of property involved in the terrorism financing offence have been strengthened to ensure that the funding of the terrorism financing offence is detected and seized after due process of law. According to sources, Ministry of Interior will submit the Bill along with a comparative matrix of old and new provisions of Anti-terrorism Act, 1997 concerning terrorist financing and amendment rationale to the federal cabinet for approval.
Interior Ministry sources also claimed that it has consulted stakeholders, including the Ministries of Foreign Affairs and Finance, the State Bank of Pakistan, the Securities Exchange Commission of Pakistan and the National Accountability Bureau. Lately, the President of Pakistan has, vide UO No1(246)/AS(FA)/20 of August 7, 2012 in response to the Ministry of Foreign Affairs UO UN(II)-6/4/2012 of August 1, August, 2012, directed that the Bill may be moved for enactment. The early enactment of the Bill would prevent any harsher decisions by FATF, including financial sanctions.