FATF: Primary challenges for govt at crucial Paris plenary

The primary challenges for the government in the ongoing crucial plenary meeting of the Financial Action Task Force (FATF) in Paris would be to convince the meeting on the sustainability of actionable measures against proscribed individuals and organisations.

Additionally, official sources stated that monitoring of NGOs/NPOs funding and ensuring maximum criminal and civil penalties for money laundering and terrorist financing would also be challenges faced by the government team in the Paris meeting.

The federal government is planning to enhance criminal and civil penalties for those involved in money laundering and terrorist financing in line with the recommendations of the FATF.

Official sources told Business Recorder on Monday that FATF has asked the government to ensure timely freezing of assets of proscribed individuals and organizations under the United Nations Security Council (UNSC) sanctions committee. Federal and provincial governments need to act promptly to freeze assets of such proscribed persons and organizations notified from time to time.

Over 60,000 NGOs/NPOs fall within the domain of provincial governments and there is a need to structure NGOs and monitor their funding through provincial charity commissions.

The government has already prohibited all officers of companies from providing any assistance or funding including charity/donations to these entities and individuals on the list of proscribed organizations updated by National Counter Terrorism Authority (NACTA).

Sources on strict condition of anonymity told this correspondent that if Pakistan is taken out of Grey List, there would be a need to ensure that actionable measures are sustainable and Pakistan would have to continue to enforce measures against money laundering and terrorist financing.

The government is also in the process of amending 14 to 15 laws to ensure an effective legal framework against money laundering and terrorist financing before the next fiscal budget.

Sources said that the legal framework needs to be further strengthened.

Sources further stated that there is a need to introduce changes in the laws to fulfill legal requirements under the FATF and the FATF meeting in Paris reportedly discussed targets and their timelines as preconditions for removal of Pakistan from the grey list.