Tag: FATF

FATF gives Pakistan four months to comply with action plan

ISLAMABAD: Financial Action Task Force (FATF) on Friday set a deadline of four months for Pakistan to improve action plan against laundering and terror financing.

At a press conference in Paris, France the officials of FATF expressed concerns over implementation of action plan by the Pakistani authorities.

FATF strongly urged Pakistan to swiftly complete its full action plan by February 2020. Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary.

It has been observed that action taken by Pakistan was not sufficient to address its Terror Financing risks. These include remaining deficiencies in demonstrating a sufficient understanding of Pakistan’s transnational Terror Financing risks.

Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the terror financing risks emanating from the jurisdiction.

To date, Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan.

In a statement, the ministry of finance said that the FATF Plenary meeting was held in Paris from 13-18 October 2019. The Pakistan delegation was led by Muhammad Hammad Azhar, Minister for Economic Affairs Division.

The FATF meeting considered Pakistan’s progress report on the FATF Action Plan and Pakistan’s APG Mutual Evaluation report (MER).

Pakistan’s delegation reaffirmed its political commitment to fully implement the Action Plan.

The Plenary meeting decided to maintain status quo on the FATF Action Plan and allow the usual 12 months observation period for the APG MER.

The delegation also held sideline meetings with various delegations and briefed them about the progress made by Pakistan on the FATF Action Plan and steps taken for strengthening its AML/CFT framework.

A session on technical assistance and training needs of Pakistan was also organized in collaboration with UNODC and APG Secretariat which was attended by a number of interested countries and multilateral agencies including China, USA, UK, Canada, Japan, EU, World Bank, IMF, ADB, and UNODC.

October 18, 2019
FATF APG issues evaluation report on Pakistan

KARACHI: Asia Pacific Group (APG) of Financial Action Task Force (FATF) on money laundering has released its mutual evaluation report on October 02, 2019, where the group has discussed measures in place in Pakistan during onsite visit conducted in October 2018.

Analysts at Topline Research said that according to recently released report by APG, out of 40 recommendations given to Pakistan, the country has shown compliance to one factor ‘Financial Institutions Secrecy Law’ and has shown non-compliance in four areas.

However, Pakistan is partially compliant on 26 and largely compliant on 9 recommendations.

The analysts believe the probability is high that Pakistan will remain on the “grey list” as the government needs minimum of 3 votes to avoid falling in black list. Support from China, Malaysia and Turkey for the said matter is likely.

International Monetary fund (IMF) has also kept FATF issue as a structural benchmark with timeline ending Oct 2019, whereby Pakistan’s AML/CFT was supposed to be strengthened.

In case of black-list the potential impact would be overall downgrade of the financial system of Pakistan and restrictions on its markets.

October 7, 2019
FATC Cell established at FBR Chairman office

ISLAMABAD: A cell of Financial Action Task Force (FATF) has been established at the office of Chairman, Federal Board of Revenue (FBR) Headquarter, Islamabad to ensure timely completion of FATF related issues, a notification said on Wednesday.

The FATF CELL will serve as focal point for all activities related to FBR’s compliance to FATF issues.

The FATF Cell shall:

i. Make periodical reports/papers/briefs for discussion in the FATF related meetings.

ii. Coordinate with FATF Cell at Intelligence and Investigation (I&I) FBR, Islamabad and all other agencies related to FATF action plan.

iii. Conduct research and compile reports for effective improvement of the FATF Cell working in FBR HQ.

iv. Any other task assigned from time to time.

The FBR further said that the following officers have been transferred / posted at FATF Cell with immediate effect and until further orders:

01. Syed Asad Raza Rizvi, Pakistan Customs Service (PCS) BS-20 has been transferred to Chief, FATF Cell, FBR Headquarters, Islamabad from the post of Director, Directorate of Intelligence and Investigation-FBR, Multan.

02. Muhammad Waqas Hanif, Inland Revenue IRS/BS-19 has been transferred and posted as Secretary, FATF Cell, FBR, HQ, Islamabad from the post of Additional Director, Directorate General of I&I, IR, Islamabad.

03. Muhammad Asif (PCS/BS-19) has been transferred and posted as Secretary, FATF Cell, FBR, HQ, Islamabad from the post of Additional Director, FATF Cell, Directorate General of Intelligence and Investigation, FBR, Islamabd.

September 25, 2019
FBR posts six IR officials to FATF Cell

ISLAMABAD: Federal Board of Revenue (FBR) has appointed six officials of Inland Revenue to Financial Action Task Force (FATF) Cell.

The FATF cell will be headed by Ijlal Khattak, Director (Headquarters) and other members are included: Zahid Bhatti, Additional Director (HQ); Sarwar Habib Malik, Deputy Director-I; Rizwan Shahzad, Senior Auditor; Yasir Shah, IIR; and Muhammad Yousuf, Assistant.

A Financial Action Task Force (FATF FBR-IR) Cell is hereby constituted to ensure effective and timely completion of FATF related Action Plan and is placed under the Director General, Intelligence & Investigation-IR, Islamabad. The FATF (FBR-IR) Cell will serve as focal point for all activities related to Inland Revenue for FATF issues.

The FATF (FBR-IR) Cell may seek information required for FATF related work from the Board, field formations, directorates and record of meetings.

The head of field formations/directorates are requested to create enabling environment for this unit considering its sensitive nature.

Related Posts

FBR establishes FATF cell

August 16, 2019
Hafeez Shaikh briefs US treasury officials on FATF action plan implementation

ISLAMABAD: A US delegation led by Ambassador Alice G. Wells, Acting Assistant Secretary of State for the Bureau of South and Central Asian Affairs, along with the US Treasury officials comprising Scott Rembrandt, Deputy Assistant Secretary, Grant Vickers, David Galbraith and others held a meeting with Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance & Revenue today at Finance Division, Islamabad.

A statement on Tuesday said that the adviser briefed the visiting delegation on measures pertaining to economic reforms being undertaken by the government of Pakistan to ensure economic discipline, efforts being made towards implementation of FATF Action Plan and the key challenges being faced.

He emphasized the importance of bilateral engagement with the US and the need to encourage entrepreneurs from private sector of both the countries which will lead to enhanced trade.

The Adviser informed that over the past three months, the Government has taken significant steps to bring financial discipline that include reduction in Current Account deficit, focus on increasing revenue generation, measures to reduce fiscal expenditures, reduce fiscal borrowings, efforts to enhance foreign exchange reserves through bilateral and multilateral support, arrangement of petroleum credit facility with KSA and IDB and IMF Program.

Further, as part of its institutional development initiative, SBP and FBR are being resourced and empowered. At the same time to support economic growth and facilitate the people below the poverty line, various Programs to support our export oriented industries and health insurance schemes have been introduced for the poor.

Regarding, implementation of FATF Action Plan, the Adviser briefed that the government is putting in all-out efforts to complete the Action Plan, involving all relevant authorities at the federal and provincial levels, supported by capacity building through international partners.

The Adviser expressed Government of Pakistan’s commitment to enhance the effectiveness of its AML/CFT Framework being undertaken by the government of Pakistan, with the objective to ensure that all the actions that are being taken to curb Terror Financing are irreversible and sustainable.

The Adviser urged for continued support of the international community for strengthening of the AML/CFT Framework over a longer period of time. Ms. Alice G. Wells appreciated the briefings and expressed that the US would continue to remain engaged with Pakistan in its economic reforms efforts and help build an environment that facilitates business development between the two countries.

August 6, 2019
FBR establishes FATF cell

The Federal Board of Revenue (FBR) has established a dedicated cell to oversee compliance with actions mandated by the Financial Action Task Force (FATF).
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July 25, 2019
Meeting reviews progress on FATF Action Plan

ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs on Monday chaired a meeting to review progress on Financial Action Task Force (FATF) Action Plan.

The Secretary Finance updated all the key stakeholders on the critical nature of the meeting, serious challenges at hand and top priority that is being assigned by the government.

The chair was updated by all the key stakeholders regarding progress made by Pakistan on FATF Action Plan.

The stakeholders demonstrated coordination and commitment to achieve this national objective.

The finance adviser advised all stakeholders to work round the clock and give highest priority, efforts as well as extra time for achieving and surpassing to FATF action plan.

The meeting was attended by Secretary Finance, Secretary Interior, Chairman FBR, Chairman SECP, Deputy Governor SBP, Director General FMU, Director General CT Ministry of Foreign Affairs, Director General CT NACTA and representatives of Law enforcement and intelligence agencies.

Earlier in February 2019 meetings of Financial Action Task Force (FATF) took place at OECD, Paris to review the compliance of a number of countries with the international standards on Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT).

Pakistan was earlier placed by FATF in its Ongoing Compliance Document in view of an Action Plan undertaken by it to strengthen its CFT Regime.

The FATF reviewed the progress made by Pakistani authorities concerned with CFT role, based upon an analysis carried out by Asia-Pacific Joint Group.

The FATF noted that Pakistan took several steps to implement the Action Plan including by undertaking Risk Assessment of Terrorism Financing and Cash Smuggling in the country.

The FATF advised Pakistan for continue work on action plan, included:

(1) adequately demonstrating its proper understanding of the TF risks posed by the terrorist groups above, and conducting supervision 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 TF;

(5) improving inter-agency coordination including between provincial and federal authorities on combating TF risks;

(6) demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity and that TF 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 TF prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary; and

(8) demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) 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 TFS 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 person are deprived of their resources and the usage of the resources.

The FATF urged Pakistan to swiftly complete its action plan, particularly those with timelines of May 2019.

May 6, 2019
FATF advises Pakistan to continue on action plan implementation

ISLAMABAD: Financial Action Task Force (FATF) in its plenary meeting on Friday advised Pakistan to continue to work on implementing its action plan to address its strategic deficiencies.

The meetings of Financial Action Task Force (FATF) took place at OECD, Paris from February 17-22, 2019 to review the compliance of a number of countries with the international standards on Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT).

Pakistan was earlier placed by FATF in its Ongoing Compliance Document in view of an Action Plan undertaken by it to strengthen its CFT Regime.

The FATF reviewed the progress made by Pakistani authorities concerned with CFT role, based upon an analysis carried out by Asia-Pacific Joint Group.

The FATF noted that Pakistan took several steps to implement the Action Plan including by undertaking Risk Assessment of Terrorism Financing and Cash Smuggling in the country.

The FATF advised Pakistan for continue work on action plan, included:
(1) adequately demonstrating its proper understanding of the TF risks posed by the terrorist groups above, and conducting supervision 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 TF;

(5) improving inter-agency coordination including between provincial and federal authorities on combating TF risks;

(6) demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity and that TF 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 TF prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary; and

(8) demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) 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 TFS 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 person are deprived of their resources and the usage of the resources.

The FATF urged Pakistan to swiftly complete its action plan, particularly those with timelines of May 2019.

February 22, 2019