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‘To stay on gray record’: FATF urges Pakistan to finish motion plan by Feb 2021

by Pakistan Latest News Update

The Monetary Motion Job Pressure (FATF) has discovered that Pakistan has efficiently complied with 21 out of 27 factors of motion and determined to maintain the nation on its ‘gray record’ till February 2021, the watchdog’s president mentioned on Friday.

FATF President Marcus Pleyer introduced the choice at a digital press convention held after the physique’s three-day plenary session got here to an finish at the moment.

The worldwide watchdog reviewed Pakistan’s progress on the 27-point motion plan for addressing anti-money laundering and terror financing in its plenary session that began on October 21.

Additionally learn: Pakistan deserves worldwide assist, not a spot on the FATF grey-list

In a press release issued after the plenary session concluded, the monetary watchdog mentioned: “To date, Pakistan has made progress across all action plan items and has now largely addressed 21 of the 27 action items. As all action plan deadlines have expired, the FATF strongly urges Pakistan to swiftly complete its full action plan by February 2021.”

The assertion added that Pakistan wanted to work on 4 areas to “address its strategic deficiencies”. These embody:

demonstrating that regulation enforcement companies (LEAs) are figuring out and investigating the widest vary of terror financing exercise, which goal designated individuals and entities, and people who act on the behalf/course of the designated individuals or entities
demonstrating that terror financing prosecutions end in efficient, proportionate and dissuasive sanctions
demonstrating efficient implementation of focused monetary sanctions in opposition to all 1267 and 1373 designated terrorists and people appearing for or on their behalf; stopping the elevating and transferring of funds
together with in relation to non-profit organisations; figuring out and freezing belongings; and prohibiting entry to funds and monetary companies
demonstrating enforcement in opposition to violation of terror financing sanctions, together with in relation to NPOs, of administrative and legal penalties and provincial and federal authorities cooperating on enforcement circumstances

In response to a query by a journalist with India At the moment, Pleyer mentioned that the FATF members had determined “by consensus” that Pakistan wanted to work on the six excellent objects earlier than the physique would take into account paying an “on-site visit” to evaluate Pakistan’s progress on the bottom.

Answering one other query, he mentioned that after the on-site go to by an evaluation group, the FATF physique would evaluate Pakistan’s case in its plenary assembly and determine if the nation needs to be taken off the ‘gray record’. He identified, nonetheless, that there was “another process going on in the Asian Pacific Group” the place Pakistan’s case is being evaluated.

In the meantime, an advisory posted on the watchdog’s web site introduced that Iceland and Mongolia have been “no longer subject to the FATF’s increased monitoring process”.

Shortly after the FATF introduced its choice, Minister for Industries Hammad Azhar mentioned that Pakistan had “achieved impressive progress” and congratulated federal and provincial groups “who have worked day and night even during the pandemic to ensure this turn around”.

The minister mentioned that as a result of Pakistan’s progress FATF had “acknowledged that any blacklisting is off the table now”.

Pakistan has been on the FATF’s gray record since June 2018. The gray record contains nations being monitored by the watchdog.

The FATF plenary was earlier scheduled in June however Islamabad bought an surprising breather after the worldwide watchdog in opposition to monetary crimes briefly postponed all mutual evaluations and follow-up deadlines within the wake of the Covid-19 pandemic.

The Paris-based company additionally put a normal pause on the evaluate course of, thus giving Pakistan an extra 4 months to fulfill the necessities.

In February, the FATF had given Islamabad a four-month grace interval to finish its 27-point motion plan, noting that Pakistan had delivered on 14 factors however missed 13 different targets. On July 28, the federal government reported to parliament compliance with 14 factors of the 27-point motion plan and with 10 of the 40 suggestions.

By September 16, nonetheless, the joint session of the parliament amended about 15 legal guidelines to improve its authorized system matching worldwide requirements as required by the FATF. Pakistani officers have been hopeful of a optimistic final result, particularly after the current laws by parliament on counter-terror financing and cash laundering.

The FATF locations these nations on its gray record which aren’t taking measures to fight terror funding and cash laundering. Placement on the gray record is a warning for a rustic that it could be placed on the blacklist in case of its failure to take efficient measures in opposition to cash laundering and terror financing.

After being positioned on the gray record, a rustic is immediately scrutinised by the monetary watchdog till it’s glad by the measures taken to curb terror financing and cash laundering. If the watchdog doesn’t deem progress by nations on the record as passable, they might be relegated to the blacklist — an inventory of the nations branded as uncooperative and tax havens for terror funding. These nations could face world sanctions as effectively.

International locations on the blacklist — or ‘high-risk jurisdictions’ — have vital strategic deficiencies of their regimes to counter cash laundering, terrorist financing, and financing of proliferation, in accordance with the watchdog.

India’s plans will fail

Foreign Minister Shah Mehmood Qureshi speaks to reporters in Islamabad on Friday. — DawnNewsTV

Foreign Minister Shah Mehmood Qureshi on Friday mentioned India’s plans to “push Pakistan into the blacklist” of the FATF will fail due to the steps the nation has taken to fulfill the necessities of the worldwide cash laundering and terrorist financing watchdog.

He was talking to reporters in Islamabad, hours earlier than the FATF introduced its choice.

“I can say this with confidence, India will fail in its designs to push Pakistan into the blacklist,” Qureshi mentioned, including that the world had “acknowledged” at the moment that the incumbent authorities and parliament had taken “concrete steps” relating to the FATF motion plan.

He mentioned Pakistan had carried out laws and brought administrative measures to test cash laundering and terror financing which weren’t seen within the current previous.

Of the 27 factors on which the FATF had requested Pakistan to take motion, “I can say with conviction we have implemented 21,” the minister mentioned. He added that progress had additionally been made on the remaining six factors.

“Considering all this progress, the FATF forum should view Pakistan’s measures positively and create room for Pakistan,” he emphasised, saying he hoped the world will “acknowledge” the steps taken by the nation.

A day earlier, the International Workplace (FO) rejected baseless stories circulating within the media claiming Saudi Arabia had voted in opposition to Pakistan on the FATF session.

“Pakistan and Saudi Arabia enjoy strong fraternal ties and the two countries have always cooperated with each other on all matters of bilateral, regional and international importance,” FO spokesman Zahid Hafeez Chaudhri had mentioned.

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