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Property and accounts of banned outfits seized, Pakistan govt tells FATF in Sydney dialogue

Pakistan has frozen the financial institution accounts and property of banned outfits, a delegation of the Pakistani authorities advised the Asia Pacific Group (APG) of the Monetary Motion Job Drive in Sydney on Tuesday. 

Primarily based out of Paris, the FATF is an inter-governmental physique that combats cash laundering, terrorist financing and threats to the worldwide monetary system. It put Pakistan on its gray checklist in June 2017 due to deficiencies within the nation’s Anti-Cash Laundering (AML) and Countering of Terrorist Financing (CTF) rules.

Pakistan and the APG, which Pakistan is a member of, started the primary spherical of dialogue in Sydney the place authorities officers briefed the latter about actions it has taken towards banned outfits concerned in terrorist financing.

Within the Sydney briefing, Pakistani officers advised the APG that they’ve frozen the accounts and property of the Jamaat ud Dawa and its welfare wing the Falah-e-Insaniat Basis. Different banned outfits whose property had been seized embody the Da’ish, Taliban, Al-Qaeda, Lashkar-e-Taiba, Jaish-e-Mohammad and Haqqani Community, in response to the briefing.

Final October, an FATF delegation visited Pakistan for 2 weeks to evaluate the nation’s progress on countering cash laundering and financing of terrorism. The FATF gave the federal government an motion plan to exit from the gray checklist. Later in December, Pakistan ready a Terrorism Financing Threat Evaluation report, which incorporates drug trafficking, kidnapping for ransom, exterior funding, extortion, and robberies amongst major sources of terrorism financing in Pakistan.

Related: FATF in Pakistan for 2 weeks to check money laundering, terrorist financing progress

The report shall be offered to the APG within the ongoing Sydney dialogue, which is an extension of that course of and can finish on January 10. The APG will then current Pakistan’s case earlier than the FATF in February.

Pakistan is amongst 83 international locations with a threat rating of 5.zero or above. These are international locations that may very well be loosely labeled as having a major threat of cash laundering and terrorist financing, in response to the Basel AML Report 2018, an impartial annual rating that assesses the chance of cash laundering and terrorist financing in 129 international locations.

“Cash laundering and terrorist financing proceed to cripple economies, distort worldwide funds and hurt residents across the globe,” says the report, which varieties its world index primarily based on the FATF’s nation analysis reviews. It estimates that the sum of money laundered worldwide ranges from $500 billion to a staggering $1 trillion.

Pakistan has criminalised each cash laundering and terrorist financing however has not been in a position to implement these legal guidelines successfully. Being on the gray checklist doesn’t include any sanctions, but when we stay on this checklist, we face the chance of being placed on the black checklist. That is the place it will get problematic.

Related: FATF wants all dollar, euro transactions above $3,000 to be documented

Being on the black checklist means our banking system shall be considered one with poor controls over AML and CFT requirements — neglect bringing PayPal to Pakistan, expatriates will discover it troublesome to ship remittances and merchants’ value of enterprise will enhance as a result of our banks will face greater scrutiny in worldwide funds and overseas banks won’t even do enterprise with Pakistani banks. The federal government, too, will battle to lift funds from worldwide markets if we’re positioned on the black checklist.

Pakistan has been on and off the gray checklist prior to now. The final time we had been faraway from the gray checklist was in February 2015. If the continued consultations between the FATF and the Pakistani authorities are profitable, we shall be taken off the gray checklist and positioned on the white checklist.



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