Country to exit grey list in ‘12 months’

Minister says unlike before, FATF now focuses on effectiveness on ground


Our Correspondent June 26, 2021
Federal Minister for Energy Hammad Azhar. PHOTO: TWITTER/@Hammad_Azhar

ISLAMABAD:

Federal Energy Minister Hammad Azhar on Friday expressed hope that Pakistan would be removed from Financial Action Task Force (FATF) grey list after completing the new action plan within a year.

The minister was addressing a news conference after the global watchdog announced its decision to retain Pakistan on its grey list despite the country meeting 26 of the 27 conditions and handed it over a new six-point action plan.

“We will complete the remaining [conditions] within 12 months… Pakistan will now be placed on white list instead of black,” he said.

Hammad said the FATF president including other members of global anti-money laundering watchdog had appreciated Pakistan’s “remarkable progress”.

While responding to a question as to why the country was not removed from the grey list, the minister said FATF as an organisation had been “changing” with time.

“Previously it [FATF] was only concerned about technical compliance but now it also focuses on effectiveness which needs to be achieved on ground and not only on papers,” he said. “We have achieved above partial completion,” the minister added.

The minister said 75 of the 82 technical points on the overall agenda given to Pakistan had already been completed and the remaining ones were "less challenging” to overcome.

The sole remaining item on financial terrorism in the FATF's original action plan would be completed in three to four months in time for the next plenary session.

The minister said that there was no threat of sanctions from other countries because of Pakistan remaining in the grey list.

Read more: FATF grey-listing caused ‘$38b losses’

“The FATF has called for increased regulation on sectors such as real estate and jewellers since it felt more effectiveness was needed against money laundering,” he added.

“It also called for better monitoring of trusts and beneficial ownerships as well as a quicker turnaround in money laundering investigations being taken to prosecution and in greater numbers.”

Hammad also said India’s had been "badly exposed" and "overplayed its hand" because of which it was “politicising” the forum.

Pakistan’s achievements in complying with the FATF original action plan include conducting six national level risk assessments on money laundering and terrorist financing as per the global watchdog’s requirements.

It also formulated a risk-based strategy and a detailed roadmap to address the concerns of FATF.

Eleven working groups with representation from all key stakeholders were formed to ensure compliance.

It also formulated regulatory and supervisory frameworks for high-risk sectors.

Institutional capacity was improved by ensuring extensive outreach building. A standalone Mutual Legal Assistance Act (MLA) was enacted and various memorandums of understanding with international counterparts were signed. A 93% increase was observed in international requests sent to foreign jurisdictions. Pakistan’s response time to international cooperation requests improved from 11 months to one month.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ