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FATF once again retains Pakistan on grey list

Norwegian

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FATF once again retains Pakistan on grey list​

By
Business desk

Friday Mar 04, 2022

— Twitter/File
— Twitter/File

  • FATF says that Pakistan has completed 26 of the 27 action items in its 2018 action plan.
  • "FATF encourages Pakistan to continue to make progress," the statement says.
  • Plenary appoints T Raja Kumar of Singapore as the next President of the FATF.




PARIS: The Financial Action Task Force (FATF) on Friday announced that it is retaining Pakistan on the grey list while noting that "significant progress" has been made in completing the required action items for removal from the list.
The FATF, in its statement, said that Pakistan has completed 26 of the 27 action items in its 2018 action plan.
"Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime and to address its strategic counter-terrorist financing-related deficiencies, Pakistan’s continued political commitment has led to significant progress across a comprehensive CFT action plan," the statement read.
It further added the FATF encourages Pakistan to continue to make progress to address, as soon as possible, the one remaining item by continuing to demonstrate that TF investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups.
The international watchdog said that in response to additional deficiencies later identified in Pakistan’s 2019 APG Mutual Evaluation Report (MER), in June 2021, Pakistan provided further high-level commitment to address these “strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering.”
It further added since June 2021, Pakistan has taken swift steps towards improving its AML/CFT regime and completed six of the seven action items ahead of any relevant deadlines expiring, including by demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan’s risk profile.
“Pakistan should continue to work to address the one remaining item in its 2021 action plan by demonstrating a positive and sustained trend of pursuing complex ML investigations and prosecutions,” the statement read.

Pakistan endeavouring to complete remaining items of action plan: Finance Division

According to a statement issued by the Finance Division, the FATF reviewed Pakistan’s progress on both action plans in its Plenary meeting.
"The FATF members, while participating in the discussion on Pakistan’s progress, recognised Pakistan’s continuing commitment towards sustainable, robust AML/CFT frameworks," the statement said.
"Pakistan presented its case in an effective manner and also reaffirmed its political commitment to continue with the efforts to complete the action plans."
"The country is making endeavours to complete the last two remaining items of both the action plans, as early as possible."

Plenary appoints Raja Kumar of Singapore as next president​

This week, the Plenary took the formal decision to appoint T Raja Kumar of Singapore as the next president of the FATF, for a fixed two-year term.
The statement further added member countries made this decision following a comprehensive process, led by the current FATF president Dr Marcus Pleyer. The decision was made after consultations with all delegations.
“A number of highly-qualified candidates were put forward by the FATF membership, each presenting his/her priorities and vision for the future of the FATF,” it said.
As a result of this process, the FATF Plenary agreed to appoint Kumar as the next president of the FATF.
Kumar will take up his duties on 1 July 2022, the day after the two-year presidency of Dr Pleyer concludes.
In October, the international watchdog retained Pakistan on the grey list, while noting that "good progress" had been made in completing the required action items for removal from the list.
At that time, Dr Pleyer had said that Pakistan has two concurrent action plans with a total of 34 action plan items. "It has now addressed, or largely addressed 30 of the items," he had said back in October.
Pakistan has been on the FATF’s increased monitoring list, known as the grey list, since June 2018.
 

Ali_Baba

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Let see what UAE's action plan is and how long they stay in the grey list and what their exist criteria is ...

Given the wealth that there is in the middle east and China and Centra asia - a banking system and payment system can be setup thast is indendependent of the West/FATF for banking services for trade between them that is USD free and for investmets in each other countries aswell.

FATF more than about banking - it also controls how much investment goes into your country and institutional investors will not invest in a country that is in the grey or black list. etc.
 

ghazi52

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Pakistan stays on FATF's 'grey-list', UAE added

  • Global financial crime watchdog says Pakistan has completed 26 of the 27 action items in its 2018 action plan, and another 6 of the 7 since June 2021

BR Web Desk | Reuters
05 Mar, 2022


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Pakistan will continue to stay in the Financial Action Task Force’s (FATF) increased monitoring list, also known as the grey-list, it was announced after the FATF Plenary held from March 1 to 4.

"Since June 2018, when Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its strategic counter-terrorist financing-related deficiencies, Pakistan’s continued political commitment has led to significant progress across a comprehensive CFT action plan," it said in the statement.

"Pakistan has completed 26 of the 27 action items in its 2018 action plan. The FATF encourages Pakistan to continue to make progress to address, as soon as possible, the one remaining item by continuing to demonstrate that TF investigations and prosecutions target senior leaders and commanders of UN designated terrorist groups."

The FATF plenary added that in response to additional deficiencies later identified in Pakistan’s 2019 APG Mutual Evaluation Report (MER), in June 2021, Pakistan provided further high-level commitment to address these strategic deficiencies pursuant to a new action plan that primarily focuses on combating money laundering.

"Since June 2021, Pakistan has taken swift steps towards improving its AML/CFT regime and completed 6 of the 7 action items ahead of any relevant deadlines expiring, including by demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan’s risk profile. Pakistan should continue to work to address the one remaining item in its 2021 action plan by demonstrating a positive and sustained trend of pursuing complex ML investigations and prosecutions."

Under the German Presidency of Dr Marcus Pleyer, delegates representing 206 members of the Global Network and observer organisations, including the International Monetary Fund (IMF), the United Nations and the Egmont Group of Financial Intelligence Units, took part in the FATF Plenary.

The event took place in a hybrid format with a significant number of participants attending in person due to the gradual easing of COVID-19 related restrictions in many countries.

FATF adds UAE to 'grey' money laundering watchlist
Meanwhile, FATF also added the United Arab Emirates to its "grey" watchlist.

"In February 2022, the UAE made a high-level political commitment to work with the FATF and MENAFATF to strengthen the effectiveness of its AML/CFT regime," read the statement on the UAE.

"Since the adoption of its MER in February 2020, the UAE has made significant progress across its MER’s recommended actions to improve its system, including by finalising a TF Risk Assessment, creating an AML/CFT coordination committee, establishing an effective system to implement targeted financial sanctions without delay, and significantly improving its ability to confiscate criminal proceeds and engage in international cooperation.

"Additionally, the UAE addressed or largely addressed more than half of the key recommended actions from the MER.

"The UAE will work to implement its FATF action plan by:
(1) demonstrating through case studies and statistics a sustained increase in outbound MLA requests to help facilitate investigation of TF, ML, and high-risk predicates;
(2) identifying and maintaining a shared understanding of the ML/TF risks between the different DNFBP sectors and institutions;
(3) showing an increase in the number and quality of STRs filed by FIs and DNFBPs;
(4) achieving a more granular understanding of the risk of abuse of legal persons and, where applicable, legal arrangements, for ML/TF;
(5) providing additional resources to the FIU to strengthen its analysis function and enhance the use of financial intelligence to pursue high-risk ML threats, such as proceeds of foreign predicate offenses, trade-based ML, and third-party laundering;
(6) demonstrating a sustained increase in effective investigations and prosecutions of different types of ML cases consistent with UAE’s risk profile; and
(7) proactively identifying and combating sanctions evasion, including by using detailed TFS guidance in sustained awareness-raising with the private sector and demonstrating a better understanding of sanctions evasion among the private sector," added the statement on UAE.

Countries on the ‘grey list’ face increased FATF monitoring and risk reputational damage, ratings adjustments, trouble obtaining global finance and higher transaction costs, experts say. UAE Minister of State Ahmed al-Sayegh had earlier said the risk from a potential greylisting to sectors such as banking, real estate and credit ratings was “generally low”.

Background

Pakistan was placed on FATF's grey-list for deficiencies in its counter-terror financing and anti-money laundering regimes in June 2018.

In October 2021, the FATF plenary had announced that Pakistan will continue to stay in the increased monitoring list.

Back then, Pakistan had made progress in complying with FATF regulations and completed 30/34 action items. The FATF president had stated that Pakistan has shown high-level political commitment and completed a substantial part of its action items.

In June 2021, Pakistan had completed 26 out of the 27 action items in its 2018 action plan.

How to be removed from FATF's increased monitoring list

In order to be removed from FATF monitoring, a jurisdiction must address all or nearly all the components of its action plan.

Once the FATF has determined that a jurisdiction has done so, it will organise an on-site visit to confirm that the implementation of the necessary legal, regulatory, and/or operational reforms is underway and there is the necessary political commitment and institutional capacity to sustain implementation.

If the on-site visit has a positive outcome, the FATF will decide on removing the jurisdiction from public identification at the next FATF plenary. The concerned jurisdiction will then continue to work within the FATF or the relevant FSRB, through its normal follow-up process, to improve its AML/CFT regime...

 

The Eagle

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I think the headline should be like:

"Arm twisting continues since Pakistan says Absolutely Not to US bases and for neutrality in blue eyed blonde war in Ukraine".

"ABSOLUTELY NOT" ....

These conditions will never be met since it is to keep Pakistan in grey forever with the risk and threat to blacklist. The reason why Pakistan will continue with independent policy and remain neutral in armed conflicts. The reason to say absolutely not and carry on with Pakistan first. It will be like doomsday and Pakistan will still need to meet their demands.......say it.... Appease them white boys to earn white badge at FATF.
 

mudas777

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They just want to tie a noose around Pakistan neck. If Pakistan 🙇‍♂️ down then all issues will be resolved.

Every one knows its an open secret. Its all to keep India happy, US and west are dancing to the Indian tune and to eat vindaloo.
Bet its a matter of time when they are going to say Hafiz Saeed and Bombay culprits need to be prosecuted if you want to get out of FATF.
 

RescueRanger

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If anything should be an eye opener for Pakistan is what is happening in real time in the Baltic regions right now.

Pakistan must work to build its infrastructure and human capital to become part of an industrial - economic blow similar to BRIC to remove the yoke of subjugation around her neck.
 

GumNaam

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fatf is dying its own death due to fast loosing its credibility through its own actions and its own weakness of not being able to resist geopolitical manipulation.
 

HttpError

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One country that should be given called black hole of corruption and placed on black list is the UK

UK should be declared the capital of Black Money, first their colonial past suggests they loved stealing resources from other countries and to this day they are doing the same just the method has changed.
 

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