The Financial Action Task Force (FATF) has drawn a 10-point target for Pakistan after the anti-terror financing body identified the country as a jurisdiction with strategic Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) deficiencies. The body has recommended an action plan to address the issues regarding anti-money laundering and counter-terror financing. Pakistan has time till May 2019 to fulfil the target.
The FATF on Friday kept Pakistan in the ‘grey list’ under mounting pressure from India and the international community in the aftermath of the Pulwama terror attack, which claimed the lives of 40 CRPF jawans in Jammu and Kashmir’s Pulwama district on February 14, 2019.
1. Demonstrate that terror funding risks are properly identified, assessed, and that supervision is applied on a risk-sensitive basis
2. Demonstrate that remedial actions and sanctions are applied in cases of Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) violations and that these actions have an effect on AML/CFT compliance by financial institutions
3. Demonstrate that competent authorities are cooperating and taking action to identify and take enforcement action against illegal money or value transfer services
4. Ensure controls on the illicit movement of currency and identify cash couriers
5. Improve inter-agency coordination between provincial and federal authorities on combating terror financing risk
6. Ensure that law enforcement agencies (leas) are identifying and terror financing activities
7. Ensure that terror financing prosecutions lead to dissuasive sanctions for terror financing
8. Identify and freeze assets which lead to terror funding
9. Ensure those violating these provisions are accorded criminal penalties
10. Facilities or resources funding terror activities must be deprived of their resources