Choking terror funding

It is expected that our politicians would rise above petty political interests to act in the interest of the country


Editorial August 01, 2019

Pakistan is a step closer over choking terror funding in line with the requirements of the Financial Action Task Force (FATF). The National Assembly’s Standing Committee on Finance has unanimously cleared two revised bills seeking amendments to the anti-money laundering law and foreign exchange regulations as part of measures to ensure compliance with the action plan sought by the global anti-money laundering watchdog based in Paris. The two parliamentary bills are aimed at strengthening the existing laws on money laundering and foreign exchange control to make them more stringent to fight money laundering and regulate foreign exchange transactions to meet standards of the 37-member inter-governmental organisation.

The proposed amendments to the anti-money laundering law mean that the money laundering crime will now be punishable with rigorous imprisonment of up to 10 years as well as a fine up to Rs5 million. And in line with the amendments proposed over foreign exchange regulations, the inland movement of foreign exchange valuing at $10,000 and above would require prior approval from the State Bank of Pakistan. The NA committee’s nod to the two revised bills only came after a threadbare discussion spanning months, and that too after amendments like requiring investigation officers to produce court warrant before arresting suspects. The real test, however, awaits the government in the Senate Standing Committee on Finance which is controlled by the opposition.

It is expected that our politicians would rise above petty political interests to act in the interest of the country which is racing against time to come good on the FATF action plan. Having gone past two deadlines — January 2019 and May 2019 — without complying in full, Pakistan now faces the October 2019 deadline. It’s when the global money laundering watchdog will take another review of Pakistan’s progress on some 10 remaining items on the 40-point action plan. On failure to convince the Paris-based task force, Pakistan — currently on the FATF grey list since June 2018 — is unlikely to spare the blacklist which also comprises the likes of Iran and North Korea, and which means global economic sanctions.

Published in The Express Tribune, August 1st, 2019.

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