Indian media is once again spreading false and misleading reports; claiming that APG has placed Pakistan on a “blacklist.”
Indian media is citing unnamed official sources, even though no statement has been issued by APG in this regard. Indian media first coined the term “Enhance Blacklist” themselves and then falsely associated it to the regional anti-money laundering watchdog.
However, the APG has no such list called “blacklist” nor do they have any jurisdiction to modify the status of any member country.
Only FATF has the authority to make any changes in the status of its member country, confirmed by a FATF official. Furthermore, Pakistan Finance Ministry has rejected the false media claims. They further clarified that only enhanced follow-up is required in some areas, identified in the Mutual Evaluation Report (MER) for further action, which was anticipated. They further added that the report was for the period from February 2018 to October 2018, in which the action tasks were not quite significant. However, since October 2018, Pakistan has made substantial progress on most of the action list, for which they have prepared a separate compliance report.
Only FATF has the authority to make any changes in the status of its member country
The Asia Pacific Group (APG) is a Financial Action Task Force-Style Regional Body, also called the “FATF-Asia Secretariat.”
The APG is an inter-governmental organisation; consisting of 41 member jurisdictions. It was established to observe and ensure effective implementation of international AML/CFT standards set by the Financial Action Task Force (FATF). The APG’s primary functions include mutual evaluation of compliance by its member jurisdictions, technical assistance, typologies research and global engagement.
Through its mutual evaluation (peer review) program, APG devised monitoring and follow-up procedures to ensure effective monitoring of members progress on deficiencies identified in their Mutual Evaluation Report (MER). The APG has three follow-up processes, which members can apply to report on MER. These processes are a biennial update, meaning reduced follow-up, regular follow-up and enhanced follow-up based on the frequency of the submission of progress reports. The enhance follow-up requires expedited reporting by the member to the Mutual Evaluation Working Group. However, the frequency will be determined by members of the group.
The APG’s 22nd annual meeting was held in Canberra, Australia, from August 18, 2019, to August 23, 2019. According to the APG press release, APG adopted six mutual evaluation reports submitted by China, Chinese Taipei, Hong Kong, Pakistan, Philippines and Solomon Islands. These reports are subject to post-plenary quality and consistency review before publication in early October 2019.
Earlier this week, Pakistan delegation, headed by State Bank of Pakistan Governor Dr Reza Baqir, attended the APG’s 22nd annual meeting in Canberra, Australia.
The meeting adopted Pakistan’s third Mutual Evaluation Report, covering a period from February 2018 to October 2018. Pakistan briefed APG’s evaluation working group on the steps taken to improve its AML/CFT Framework and effective implementation of the FATF Action Plan. Pakistan is very much confident on the progress made specifically since October 2018. It is hopeful for a favourable outcome from FATF plenary in October 2019, where the implementation of Action Plan and APG findings will be reviewed.
Pakistan has been a member of the APG since 2000. Pakistan was placed on the FATF grey list due to deficiencies in its financial regime. Since then, Pakistan has committed to working with FATF and APG to strengthen its AML/CFT framework. Pakistan has taken substantial steps towards improving its financial regime. The last set of the action plan items are set to expire in October 2019, as per the timeline set by FATF.
The writer is a PhD candidate in Sustainability Management from the University of Waterloo, Ontario Canada