The Asia-Pacific Joint Group – a regional affiliate of the Financial Action Task Force – is going to take up the case of Pakistan today in China where a 10-member Pakistani delegation will apprise the meeting about Islamabad’s efforts to stop money laundering and financing of terrorism. Pakistan has taken actions against proscribed organisations and illegal flow of funds that can be used against any state or are considered a threat to the global financial system. Operations of banks, non-banking financial institutions, insurance companies and stock exchanges have also been under scrutinized to plug leaks and new checks have been introduced to bar proscribed entities.
Some of the actions are more visible than words. Last week, the Islamabad police barred several proscribed entities from collecting donations for charity. A Cross Border Currency Movement cell is being created to maintain data on currency seizures by customs. The cell will also maintain data on suspicious or illegal transactions and share it with law enforcement agencies and the Federal Board of Revenue. Early and effective prosecution of money-laundering cases is also getting attention. Special investigating officers have been nominated for money laundering cases. They will investigate and prosecute cases under the Anti-Money Laundering Act of 2010, Customs Act of 1969 and Criminal Procedure Code 1898. There is a need also for new laws for speedy trial of money-laundering cases. In many instances, they are open-and-shut cases, given the nature of the offences, and the credible evidence available.
The international community is more concerned about militant and radical bodies that continue to operate in Pakistan. The government has shown a stern resolve on that front too. Last week, nine outfits were placed on the list of proscribed bodies apparently for carrying forward the work of Jamaatud Dawa and the Falah-i-Insaniyat Foundation. Jaish-i-Muhammad has virtually been under government control since March, Its chief has now been declared a terrorist by the United Nations.
The delegation was upbeat about its ability to persuade the APG meeting that appropriate progress has been made. Indian influence in the FATF circles has been mentioned previously. The point is even though the influence is real, credible and visible actions by the government cannot go unnoticed. Last month, an APG delegation had voiced reservations with regard to inadequate on-ground action against the proscribed organisations to block flow of funds. Most of the recent actions were targeted at bridging those shortcomings. Visible commitment to the cause needs to continue. Negligence and lapses in this regard can be just as harmful as a lack of transparency or selective compliance. *