Daily Times

ISLAMABAD: A delegation of Financial Action Task Force (FATF) has urged Pakistan to tighten its anti-terror financing laws to combat money laundering, and terror financing.

FATF placed Pakistan on the grey list in June, and the Asia Pacific Group (APG) on money laundering will submit a report to FATF to see developments in Pakistan.

The APG delegation, which is currently in Pakistan, urged Pakistan to enforce laws that allow for foreign governments to freeze assets, and make extraditions.

The delegations met with the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), National Counter Terrorism Authority (NACTA), the Federal Investigation Agency (FIA), the Ministry of Foreign Affairs, and the Ministry of Interior.

The report prepared by APG may play a role in removing Pakistan of the grey list. Pakistan must, according to FATF, comply with a ten point action plan by next September.

The ten points are:

1) Demonstrating that terrorist financing risks are properly identified, assessed, and that supervision is applied on a risk-sensitive basis

2) Demonstrating that remedial actions and sanctions are applied in cases of AML/CFT violations, and that these actions have an effect on AML/CFT compliance by financial institutions

3) Demonstrating that competent authorities are cooperating and taking action to identify and take enforcement action against illegal money or value transfer services (MVTS)

4) Demonstrating that authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers being used for terrorist financing

5) Improving inter-agency coordination, including between provincial and federal authorities, on combating terrorist financing risks

6) Demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of terrorist financing activity and that terrorist financing investigations and prosecutions target designated persons and entities, and persons and entities acting on behalf or at the direction of the designated persons or entities

7) Demonstrating that terrorist financing prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary

8) Demonstrating effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists and those acting for or on their behalf, including preventing the raising and moving of funds, identifying and freezing assets (movable and immovable), and prohibiting access to funds and financial services

9) Demonstrating enforcement against targeted financial sanctions violations including administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases

10) Demonstrating that facilities and services owned or controlled by designated persons are deprived of their resources and the usage of the resources.

READ MORE: FATF’s big grey list and Pakistan’s fate