The key theme of Financial Action Task Force (FATF) review methodology is effectiveness of Anti-Money Laundering/Counter Financing Terrorism on the basis of 11 immediate outcomes. This was revealed in a presentation by Financial Monitoring Unit, set up in the State Bank of Pakistan.
The relevant immediate outcomes for Pakistan's action plan are defined as follows: (i) supervisors supervise and regulate financial institutions and designated non business or professions (DNFBPs) for compliance with AML/CFT requirements commensurate with risks; (ii). Proceeds and instrumentalities of crime are confiscated regarding illegal cross border cash transportation; (iii) terror financing offences and activities are investigated and terrorist financiers are prosecuted and subjected to effective and dissuasive sanctions; and (iv) terrorist entities, individuals and financiers are prevented from dealing in and using funds, and from abusing the NPO sector.
In addition the actions required flal under 4 areas corresponding to immediate outcomes under FATF methodology: (i) supervision and enforcement of AML/CFT controls by financial institutions, including money service businesses; (ii) measures to prevent illicit cross border transportation of currency; (iii)progress on terror financing (TF) investigations and prosecutions, including the necessary coordination with provincial authorities;(iv) implementation of targeted financial sanctions regarding coordination between provincial and federal law enforcement authorities to identify and freeze UNSCRs 1267 and 1373 property and enforcement of prohibition of funds and financial services.
The presentation reveals that during face-to-face meetings in Bangkok in May 23, 24, Pakistan succeeded in getting actions reduced from 49 to 27 and the implementation time period was increased from 3-12 months to 6-15 months.
The action plan presented 24 to 29 June by Pakistan to FATF was accepted and FATF added Pakistan in its list on improving global AML/CFT Compliance document in June 2018 (Grey List).
There would be quarterly monitoring of action Plan by Asia Pacific Joint Group, scheduled early October. An Inter-departmental Working Group was agreed to be formed to steer Action Plan (led by NACTA).
An official of finance ministry claimed that the inter-ministerial group has also been formed.
National Risk Assessment on Money Laundering and Terrorist Financing (NRA-2016) was to be updated on emergent basis. This is ongoing according to national coordinator NACTA.
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