FATF's regional body retains Pakistan on 'enhanced follow-up' for sufficient outstanding requirements

2 weeks ago 15

The Asia Pacific Group connected Money Laundering has retained Pakistan connected "enhanced follow-up" presumption for outstanding requirements, and Islamabad volition proceed to study backmost to it connected the country's advancement to fortify its implementation of anti-money laundering and combating financing panic measures, according to a media study connected Saturday.

Pakistan was enactment connected the grey database by the Paris-based Financial Action Task Force (FATF) successful June 2018 and the state has been struggling to travel retired of it. The Asia Pacific Group (APG) is simply a determination affiliate of the FATF.

The 2nd Follow-Up Report (FUR) connected Mutual Evaluation of Pakistan released by the APG besides downgraded the state connected 1 criteria.

The study said Pakistan was re-rated to 'compliant' presumption connected 5 counts and connected 15 others to 'largely compliant' and connected yet different number to 'partially compliant'.

Also Read | FATF keeps Pakistan successful grey list, cites 'serious' deficiency successful checking panic financing

Dawn paper reported that overall, Pakistan is present afloat 'compliant' with 7 recommendations and 'largely compliant' with 24 others. The state is 'partially compliant' with 7 recommendations and 'non-compliant' with 2 retired of a full 40 recommendations.

All successful all, Pakistan is present compliant oregon mostly compliant with 31 retired of 40 FATF recommendations.

The reporting day for this valuation was October 1, 2020, which means Islamabad whitethorn person made further advancement since past that would beryllium evaluated astatine a aboriginal stage.

"Pakistan volition determination from enhanced (expedited) to enhanced follow-up, and volition proceed to study backmost to the APG connected advancement to fortify its implementation of anti-money laundering and combating financing panic (AML/CFT) measures," the APG said.

Pakistan submitted its 3rd advancement study successful February 2021 which is yet to beryllium evaluated.

Also Read | Pakistan improbable to exit 'grey list' arsenic FATF meets to determine its fate: Report

"Overall, Pakistan has made notable advancement successful addressing the method compliance deficiencies identified successful its Mutual Evaluation Report (MER) and has been re-rated connected 22 recommendations," the APG added.

In the archetypal FUR of February past year, Pakistan's advancement was mostly recovered unchanged - non-compliant connected 4 counts, partially compliant connected 25 counts and mostly compliant connected 9 recommendations. Since then, the authorities worked aggressively and improved its effectiveness connected the AML/CFT system.

Minister for Energy Hammad Azhar, who is besides caput of the task unit connected FATF, welcomed the re-rating, saying the results proved the sincerity on with resoluteness of the authorities successful complying with the FATF requirements.

FATF's Mutual Evaluation Report (MER) of jurisdictions is assessed successful 2 domains - method compliance oregon ineligible instruments (40 FATF recommendations) and objection of effectiveness (11 contiguous outcomes).

Pakistan's MER was adopted successful October 2019 successful which the state was rated compliant and mostly ailment successful 10 retired of 40 recommendations.

After adoption of MER, Pakistan was placed nether post-observation play by the FATF, which expired successful February this year.

During the said period, Pakistan carried retired large ineligible reforms with the enactment of 14 national laws and 3 provincial laws on with applicable rules and regulations, the insubstantial reported.