Pakistan to introduce 'new' rules to meet FATF demands, says report

Pakistan was put on the grey list by the Paris-based FATF, the global watchdog for money laundering and terror financing in June 2018

Pakistan, keen to exit from the grey list of the FATF, is set to introduce new rules relating to anti-money laundering cases and change the prosecution process to meet its remaining tough conditions, a media report said on Monday.

 

Pakistan was put on the grey list by the Paris-based Financial Action Task Force (FATF), the global watchdog for money laundering and terror financing in June 2018 and the country has been struggling to come out of it. The Dawn newspaper reported that the changes being made also include the transfer of investigations and prosecution of anti-money laundering (AML) cases from police, provincial anti-corruption establishments (ACEs) and other similar agencies to specialised agencies. This is part of two sets of rules including the AML (Forfeited Properties Management) Rules 2021 and the AML (Referral) Rules 2021 under the National Policy Statement on Follow the Money approved by the federal Cabinet meeting a few days ago, the report said. These rules and related notifications for certain changes in the existing schedule of Anti-Money Laundering Act 2010 would come into force immediately to be followed by the appointment of administrators and special public prosecutors for implementation.

 

Based on these measures, the FATF would conclude if Pakistan has complied with three outstanding benchmarks, out of 27, that blocked its exit from the grey list in February this year. Several review meetings of the FATF are scheduled to begin in the second week of June, culminating in the next FATF plenary on June 21-25. The three outstanding action points (out of a total of 27) include (i) demonstrating that terrorist financing (TF) investigations and prosecutions target persons and entities acting on behalf or at the directive of the designated persons or entities. Demonstrating that TF prosecutions result in effective, proportionate, and dissuasive sanctions; and (iii) demonstrating effective implementation of targeted financial sanctions against all designated terrorists, particularly those acting for them or on their behalf.

 

Now, the government has decided to appoint dozens of administrators with the powers to confiscate, receive, manage, rent out, auction, transfer or dispose of or take all other measures to preserve the value of the properties and perishable or non-perishable assets to be confiscated under the AML 2010 rules or court orders.