• Wednesday, July 8, 2020

Featured To comply with FATF conditions, Pakistan needs to amend foreign exchange laws within three months

Discussion in 'Pakistan Economy' started by HalfMoon, Jun 25, 2020.

  1. HalfMoon

    HalfMoon FULL MEMBER

    Messages:
    1,461
    Joined:
    Nov 21, 2018
    Ratings:
    +1 / 1,606 / -3
    Country:
    India
    Location:
    India
    To comply with FATF conditions, Pakistan needs to amend foreign exchange laws within three months
    [​IMG]
    ISLAMABAD: The government will have to pass amendments into Anti Money Laundering (AML) and Foreign Exchange Regulation laws within next three months from the Parliament for complying with the Financial Action Task Force (FATF) conditions.


    The FATF has extended deadline for Pakistan till next plenary meeting expected to be held in October 2020, official sources confirmed to The News here on Wednesday. The official sources said that after tragic demise of DG Financial Monitoring Unit (FMU) Mansoor Hassan Siddiqui few months back, the post was fallen vacant but now the government appointed Lubna Farooq Malik, Executive Director SBP, as DG FMU. The notification of her appointment has been issued but she has not joined her new post.

    There was proposal on eve of the budget making process for 2020-21 to incorporate some amendments related to Anti Terrorism Act (ATA) and AML as part of Finance Bill but it was rejected and decided that the separate legislations would be pursued to seek approval of Parliament. The government had proposed some changes into non profit organisations (NPOs) and trusts related to income tax laws in order to comply with the FATF requirements.

    When contacted, the Finance Ministry high-ups said that the FATF extended the deadline for compliance report till October 2020. The government is working on bringing these changes into different laws and the pending legislation bills would be pursued vigorously. The FATF had placed Pakistan on the grey list in June 2018 and placed 27 conditions for review for complying in one year, till Sept 2019. Pakistan was so far given three extensions of three months each, every time to comply with 27-point action plans. Out of the 27-point action plan, the FATF had so far declared Pakistan fully compliant on 14 points and now there is a deadline of September/October 2020 for complying on the remaining 13 points in a bid to ensure exit from the grey list of the watchdog.

    According to the list of remaining 13 points of 27 action plan (1) Pakistan will have to demonstrate effectiveness of sanctions including remedial actions to curb terrorist financing in the country; (2) Pakistan will have to ensure improved effectiveness for terror financing of financial institutions with particular to banned outfits; (3) Pakistan will have to take actions against illegal money or value transfer services (MVTS) such as hundi-hawala; (4) Pakistan will have to place sanction regime against cash couriers; (5) Pakistan will have to ensure logical conclusion from ongoing terror financing investigation of law enforcing agencies (LEAs) against banned outfits and proscribed persons; (6) Pakistani authorities will have to ensure international cooperation based investigations and convictions against banned organisations (list provided to Pakistan) and proscribed persons (list provided to Pakistan); (7) The country will have to place effective domestic cooperation between Financial Monitoring Unit (FMU) and LEAs in investigation of terror financing; (8) Prosecution of banned outfits and proscribed persons (list provided to Pakistan); (9) Demonstrate convictions from court of law of banned outfits and proscribed persons (list provided to Pakistan); (10) Seizure of properties of banned outfits and proscribed persons (list provided to Pakistan); (11) Conversion of madrassas to schools and health units into official formations (list provided to Pakistan); (12) To cut off funding of banned outfits and proscribed persons; and (13) Pakistan will have to place permanent mechanism for management of properties and assets owned by the banned outfits and proscribed persons (list provided to Pakistan).

    Minister for Industries Hammad Azhar in his budget speech on June 12 stated that in June, 2018 Pakistan was placed under grey list and was required to comply with 27 Actionable Points. Our government has put in unprecedented efforts at all levels to improve its AML/CFT regime to meet the requirements of the FATF Action Plan. In this regard, he said that he has been entrusted with the responsibility of National FATF Coordination Committee. A comprehensive process of legislative, technical and operational improvements has been initiated. Significant results have been achieved in the areas of financial sector supervision, investigations, prosecutions and international cooperation,” he said.

    Resultantly, he said, “We have progressed significantly on 27 actionable items included in the FATF Action Plan. Within a period of one year, 14 items have been largely addressed and 11 partially addressed whereas in two areas, concerted efforts are being made for implementation.”


    https://www.thenews.com.pk/print/67...end-foreign-exchange-laws-within-three-months
     
    • Thanks Thanks x 1
  2. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

    Messages:
    31,456
    Joined:
    Sep 8, 2009
    Ratings:
    +65 / 32,003 / -2
    Country:
    Pakistan
    Location:
    China
    what is that
     
  3. HalfMoon

    HalfMoon FULL MEMBER

    Messages:
    1,461
    Joined:
    Nov 21, 2018
    Ratings:
    +1 / 1,606 / -3
    Country:
    India
    Location:
    India
    This

     
  4. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

    Messages:
    31,456
    Joined:
    Sep 8, 2009
    Ratings:
    +65 / 32,003 / -2
    Country:
    Pakistan
    Location:
    China
    what is that ?
     
  5. hamilcar of carthage

    hamilcar of carthage FULL MEMBER

    Messages:
    206
    Joined:
    Nov 21, 2018
    Ratings:
    +0 / 88 / -4
    Country:
    Reunion
    Location:
    Reunion
    nobody cares
    Even if we get blacklisted, it won't matter much.
     
  6. Imran Khan

    Imran Khan PDF VETERAN

    Messages:
    53,640
    Joined:
    Oct 18, 2007
    Ratings:
    +58 / 101,474 / -39
    Country:
    Pakistan
    Location:
    Pakistan
    FATF say something and our PM say usama bin ladin shaheed :rofl:
     
    • Thanks Thanks x 8
  7. IceCold

    IceCold PDF VETERAN

    Messages:
    15,627
    Joined:
    May 1, 2007
    Ratings:
    +7 / 17,285 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    That's like showing a middle finger to uncle Sam. Besides uncle Sam already blocked our move to designate Indian individuals as terrorists, two can play the game.
     
    • Thanks Thanks x 7
  8. Gripen9

    Gripen9 FULL MEMBER

    Messages:
    168
    Joined:
    Apr 15, 2019
    Ratings:
    +0 / 320 / -0
    Country:
    Pakistan
    Location:
    United States
    It matters a lot. Your integration with global financial institutions are hindered.
    It is one of the biggest stumbling for FDI. Paypal, Amazon et al won't enter Pakistan market because of this.
     
    • Thanks Thanks x 3
  9. Morpheus

    Morpheus FULL MEMBER

    Messages:
    1,334
    Joined:
    Mar 5, 2017
    Ratings:
    +0 / 2,373 / -2
    Country:
    Pakistan
    Location:
    Pakistan
    There is no chance of being blacklisted. At most, extended duration of grey list.
     
    • Thanks Thanks x 1
  10. Dalit

    Dalit ELITE MEMBER

    Messages:
    9,344
    Joined:
    Mar 16, 2012
    Ratings:
    +2 / 14,994 / -17
    Country:
    Pakistan
    Location:
    Netherlands
    It is very disappointing that the US deep state is unable to give to Hindustan what it wants.
     
    • Thanks Thanks x 1
  11. Gripen9

    Gripen9 FULL MEMBER

    Messages:
    168
    Joined:
    Apr 15, 2019
    Ratings:
    +0 / 320 / -0
    Country:
    Pakistan
    Location:
    United States
    Even staying on the grey list deters the likes of Paypal/Amazon from entering the market.
     
    • Thanks Thanks x 1
  12. Morpheus

    Morpheus FULL MEMBER

    Messages:
    1,334
    Joined:
    Mar 5, 2017
    Ratings:
    +0 / 2,373 / -2
    Country:
    Pakistan
    Location:
    Pakistan
    We have been on the grey list for so long, that companies actually don't care that much. They know the grey list is just a political tool of USA. Companies care about profits not politics. Even on Grey list we got lot of FDI coming in, aside from China.
     
    • Thanks Thanks x 1
  13. SQ8

    SQ8 ADVISORS

    Messages:
    32,928
    Joined:
    Mar 28, 2009
    Ratings:
    +326 / 64,519 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    While there are geopolitical games involved in the ancillary of the FATF - the measures are a blessing in disguise and will contribute to the prevention of further looting and corruption of the country’s financial system by oligarchs, feudal lords and other corrupt individuals both part and outside of state machinery.
     
    • Thanks Thanks x 15
  14. 313ghazi

    313ghazi SENIOR MEMBER

    Messages:
    7,148
    Joined:
    Mar 14, 2017
    Ratings:
    +32 / 13,310 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    If that list of conditions is accurate I think we should comply with all of it, apart from the bits about convicting people and converting madrasas.

    It's upto our legal system to decide if anyone is a criminal or not. We should not take foreign dictation on the matter. Same with madrasas. We decide what role they play - not the gora.

    The rest is sound financial measures.
     
    • Thanks Thanks x 1
  15. PakFactor

    PakFactor SENIOR MEMBER

    Messages:
    2,001
    Joined:
    Sep 30, 2019
    Ratings:
    +1 / 2,852 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    **** FATF we shouldn't listen and do trade any means possible even if its on the black market to survive -- we can't always be following these fucking rules, Allah didn't create these **** boys in Europe to dictate the world.