Asia Pacific Group (APG) on Money Laundering has published results of Pakistan’s third Mutual Evaluation follow-up Report on 12 August 2021.
As per the report, Pakistan has achieved compliant/largely compliant rating in 4 more recommendations, leading aggregate to 35/40 Recommendations rated as Compliant (C) or Largely Compliant (LC).
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Pakistan is now in the top tier of countries that have achieved a rating of C/LC for over 35 of the 40 FATF Recommendations. Moreover, Pakistan has also achieved the rating of Largely Compliant / Compliant in all Big Six Recommendations of the FATF which includes R.3(Money laundering offence), R.5(Terrorist financing offence), R.6(Targeted financial sanctions related to terrorism & terrorist financing), R.10(Customer due diligence), R.11(Record keeping) and R.20(Reporting of suspicious transactions).
Financial Monitoring Unit (FMU) of Pakistan led the whole process of Pakistan’s Mutual Evaluation cycle and defended the ratings during their discussions in the Mutual Evaluation Committee Meetings of APG.
After this upgrade, Pakistan is well placed in technical compliance in comparison to many other countries. For example, if Pakistan’s position is compared against G20 countries, then Pakistan is on 4th after Italy (38), Saudi Arabia (38) and UK (38).
Pakistan would continue this momentum in addressing remaining gaps identified in the Mutual Evaluation Report-2019 and would seek upgrades in remaining 5 recommendations in the fourth Follow-up Report.
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Pakistan’s MER was adopted in August 2019 in which Pakistan was rated compliant and largely complaint in 10 out of 40 FATF Recommendations for the Technical Compliance.
Pakistan carried out major legal reforms with the enactment of 17 Laws, along with relevant rules and regulations. These laws not only strengthened the systems in Pakistan but also brought in the sustainability.
