FATF reprieve

Pakistan stays on the FATF grey-list in what comes as good news from Paris. Not completely off the hook though, the country has avoided the global anti-money laundering watchdog’s blacklist – at least till coming June when a next review is scheduled. Pakistan made “significant progress” as regards the implementation of the 27-point Action Plan with a “vast majority” of FATF members recognising the “enormous efforts” made by the country to improve its counter-terror financing regime, says a handout issued by the Government of Pakistan after the conclusion of the six-day plenary meeting of the 39-member inter-governmental orgainsation in the French capital.

Caught in the FATF web since June 2018, Pakistan has taken several steps in recent times in line with the taskforce’s action plan – like proscribing several militant groups and seizing their assets as well as ensuring that foreign currency transactions in the country are not left undocumented. However, the most significant of the steps came just days before the FATF’s latest review session in the shape of the conviction of Hafiz Saeed, the Jamat-ud Dawa chief, in a terrorism-related case – something that served to demonstrate Pakistan’s seriousness to come clean on the issues of terror-financing and money-laundering.

Thus there is this second four-month lifeline from the FATF in lieu of Pakistan’s compliance on 14 of the 27 targets. How safe is Pakistan now from the blacklist? Well, it can be judged from the FAFT announcement which warns “… should significant and sustainable progress especially in prosecuting and penalising TF (terrorist financing) not be made by the next Plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdiction to advise their Financial Institutions (FIs) to give special attention to business relations and transactions with Pakistan”.

While Pakistan’s FATF woes also have to do with global politics, Pakistan must work towards benefiting from the opportunity that lies beneath the crisis, by focusing on putting our house in order and ensuring compliance on the remaining 13 targets by the next review. It’s indeed a test of the capabilities of our law enforces as well as the skills of our diplomats.

Published in The Express Tribune, February 23^rd, 2020.

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