Anti-Money Laundering and Counter Terrorist Financing Tracker

Pakistan is a member of the Asia Pacific Group on Money Laundering — a Financial Action Task Force (FATF)-style regional body. In June, the Paris-based FATF placed Pakistan on its grey list of countries that could be marked out for economic sanctions if they failed to prevent terrorists from collecting funds within their domain.

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In recent years Pakistan has taken steps to control money laundering and terrorist financing. As per progress report submitted to the International Cooperation Review Group (ICRG) in June 2018, Pakistan admitted that illegal money remitters, known as money/value transfer services (MVTS), were a significant threat to money laundering and terrorism financing. Pakistan informed the FATF that since January 2018, the FIA registered 1,038 cases of illegal MVTS operators, of which convictions have been secured in 144 cases while 440 cases are under investigation and 394 cases are at trial stage. Pakistani courts imposed Rs8 million penalties on the 144 illegal money remitters. Pakistan reported that banks in Pakistan are not providing any financial services to designated entities and individuals and are continuously conducting ongoing transaction monitoring for terrorism financing concerns. Since October 2017, Pakistan has frozen 177 additional accounts in the amount of Rs48.2 million due to indirect linkages and association of customers with the UNSC-listed persons and entities.

On other development, the Securities and Exchange Commission of Pakistan (SECP) on 20th June, 2018 issued Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018, in compliance with Financial Action Task Force (FATF) recommendations, which are mandatory to adopt for Pakistan being a member of the Asia Pacific group on money laundering. The SECP has provided a single set of regulations for all the securities brokers, insurance companies, non-banking finance companies and modarabas with the aim to harmonize the AML and CFT regime. Despite all the improvement, there is still extensive development needed in this area.

Anti-Money Laundering and Counter Terrorist Financing

Thursday, October 25

FIA submits report to PM on FATF visit.