FATF Adds Three More Conditions for Pakistan to Get Off The Greylist

The Financial Action Task Force (FATF) has added three more points to the list that Pakistan needs to comply with in order to get off the greylist.

Pakistan was previously given 10 major conditions to comply with – but with the latest addition, the country’s performance will be reviewed on 13 points in May 2019, ahead of the FATF meeting the next month in Colombo, Sri Lanka.

If the country fails to show signs of improvement, it might plunge down to the blacklist of FATA.

These three conditions are as follows:

1. How did Pakistan revise/update its national risk assessment on terror financing?
2. Results of improvement in FBR’s customs report on cash couriers to curb currency smuggling.
3. Inter-agency cooperation mechanism among law enforcing agencies at federal and provincial levels.

In February, FATF acknowledged Pakistan’s progress on its prescribed five actions in the meeting that reviewed the country’s case. However, it also identified some gaps in Pakistan’s implementation of certain action plan items.

The task force further outlined a 10-point agenda for Pakistan as a future course of action – to be reviewed again in May.

The financial task force wants Pakistan to:

• Demonstrate an understanding of the terror financing risks posed by above-mentioned terrorist groups.
• Show that remedial actions and sanctions have been applied in cases of AML/CFT violations.
• Demonstrate cooperation among authorities and action against illegal money or value transfer services (MVTS).
• Improve inter-agency coordination between provincial and federal authorities against terror financing.
• Demonstrate that Law Enforcement Agencies taking action against those involved in terror financing and against persons and entities acting on behalf or at the direction of terrorist organizations.
• Display that those (persons and entities) prosecuted for terror financing face sanctions and face due punishment.
• Demonstrate that all designated terrorists and their accomplices face effective and targeted financial sanctions, including preventing the raising and moving and access to funds.
• Illustrate that designated persons are deprived of their resources and the usage of the resources.