Pakistan retained on 'enhanced follow-up' list by FATF's regional body; here's what it means
Sydney/ Islamabad | Jagran News Desk: Pakistan has been kept on “enhanced follow up” status by Sydney-based Asia Pacific Group on Money Laundering for its unfulfilled requirements on anti-money laundering and combating terror financing measures. Asia Pacific Group on Money Laundering is the regional arm of Paris-based global anti-terror financing and money laundering watchdog Financial Action Task Force (FATF), on whose regulatory list Pakistan continues to be on the grey list since June 2018.
"Pakistan will move from enhanced (expedited) to enhanced follow-up, and will continue to report back to the APG on progress to strengthen its implementation of anti-money laundering and combating financing terror (AML/CFT) measures," the Asia Pacific Group said in a statement.
Mutual Evaluation Report (MER) of Paris-based Finance Action Task Force is assessed in two domains - technical compliance or legal instruments which contains 40 FATF recommendations and demonstration of effectiveness which reportedly has 11 immediate outcomes.
According to a report in the Dawn newspaper, Pakistan is now fully 'compliant' with seven recommendations and 'largely compliant' with 24 others. The country is 'partially compliant' with seven recommendations and 'non-compliant' with two out of a total 40 recommendations. Overall, Pakistan is now compliant or largely compliant with 31 out of 40 FATF recommendations.
Pakistan's Mutual Evaluation Report (MER) was adopted in October 2019 in which the country was rated ‘compliant’ and ‘largely compliant’ in 10 out of 40 recommendations.
After the adoption of MER, Pakistan was placed under a post-observation period by the FATF, which expired in February this year.
Between October 2019 and February 2020, Pakistan reportedly carried out major legal reforms after enacting 14 federal laws and three provincial laws in total along with various relevant rules and regulations in the same regard.
At the end of FATF’s observation period, Pakistan submitted its third progress report in February 2021 which is yet to be evaluated by FATF.
(with inputs from PTI)
Posted By: Mukul Sharma