Pakistan on Tuesday briefed the visiting team of Asian Pacific Group (APG), the regional affiliate of Financial Actions Task Force (FATF), on the regulatory measures taken to stop money laundering as well as monitoring of non-profit organisations (NPOs) and financial institutions/non-banking finance companies (NBFCs) to meet the requirement of the international body.
The visiting APG team of Financial Actions Task Force Tuesday met with high-ups of Securities and Exchange Commission of Pakistan (SECP) and Financial Monitoring Unit (FMU) here on Tuesday.
Federal Minister for Information and Broadcasting Fawad Chaudhry said that Pakistan will fully comply with the FATF and efforts are underway to address their concerns.
Replying to question after the cabinet meeting, he stated that a report would be submitted on April 15 and two meetings of the FATF, one in May 2018 and other in September 2019, would be held. "We are making efforts and taking measures to ensure compliance with the FATF recommendations by September 2019," he added.
An official said that out of total 40 recommendations, assessment of 9 was discussed on Tuesday. Out of total 11 immediate outcome areas, the meeting reviewed progress on 3 areas. He added that areas related to Securities Exchange Commission of Pakistan (SECP) and Financial Monitoring Unit (FMU) came under discussion.
The SECP, according to officials, updated APG on regulatory measures taken to stop money laundering and monitoring of non-profit organisations (NPOs) and financial institutions/organisations. The FMU updated APG on suspicious transaction reports (STRs) and subsequent actions.
On Wednesday (today), the meeting will discuss areas related to law enforcement agencies.
Sources said that the APG team was given a comprehensive briefing by the officials of the SECP/FMU on the measures taken by the government of Pakistan.
To effectively implement the FATF recommendations, sources said that the government has taken some important decisions during the last meeting on the issue held at Finance Division.
It was decided that a committee headed by National Counter Terrorism Authority Pakistan (NACTA) will review and update TF-Risk Assessment Report in the light of FATF/ICRG/AP-Joint Group recommendations. It will submit its updated report by March 31, 2019 with the Finance Division and FMU. This committee shall include National Counter-Terrorism Authority (NACTA), Federal Investigation Agency (FIA), Ministry of Interior, Ministry of Foreign Affairs, Inter-Service Intelligence, Military Intelligence, Intelligence Bureau (IB), State Bank of Pakistan (SBP), Securities & Exchange Commission of Pakistan (SECP), and Financial Monitoring Unit (FMU).
It has been decided that the FBR-Customs will complete the Sectoral Cash Smuggling Risk Assessment Report in light of the recommendations of FATF/ ICRG and AP-Joint Group findings and share the updated Report with the Finance Division and FMU by March 31, 2019.
Sources said that several other groups were also formed that would be responsible for coordinating and developing the Progress Report as well as responses to the questions of AP-Joint Group and share the Progress Report with Finance Division and FMU by April 7, 2019.
It was decided that the NACTA and Ministry of Interior will develop case studies to exhibit effectiveness of the Coordination Mechanism established by NACTA between federal and provincial authorities, under January, 2019 action item.
The SECP has said that the AML/CFT Department will implement the FATF AML/CFT standards within the SECP's regulated financial sector inter alia the stockbrokers, NBFCs and Modarabas, and the Insurers/Takaful operators.
The AML/CFT Department will frame AML/CFT regulatory framework in line with the FATF recommendations and provide requisite guidelines to the regulated entities.
The AML/CFT Department will develop Risk Based Approach for SECP's supervisory regime to effectively address any potential of money laundering within the SECP's regulated sectors and provide necessary assistance to operational departments in implementation of AML/CFT supervisory regime.
The AML/CFT Department will undertake assessment of compliance with the FATF recommendations and the effectiveness of the implemented AML/CFT regime.
The AML/CFT Department will work with national stakeholders, inter-alia, FMU, SBP, etc, and international assessors for APG/IMF/World Bank for peer review and evaluation.
Sources said that the government of Pakistan launched a major crackdown on the banned outfits at the beginning of this month.
Under these actions against the banned outfits, they pointed out that more than 120 members affiliated with these organisations have been taken into administrative detention and around 200 schools, seminaries and hospitals have been seized, besides seizing their assets.
In February 2019, the FATF advised Pakistan to take further actions that include detailed assessment of terror-financing (TF) risk, strengthening of AML/CFT supervisory measures by the regulatory authorities, financial inquiries and investigations into terrorist funding activities and promotion of awareness among the citizens on CFT measures and controls.
The FATF will undertake the next review of Pakistan's progress in June 2019 which will be preceded by face-to-face meeting with the Joint Group in May 2019.
In June 2018, Pakistan made a commitment to work with the FATF and APG to strengthen its AML/CFT regime and address its terrorism financing-related deficiencies by implementing an action plan to accomplish these objectives.