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10 ways for Pakistan to combat money laundering, terrorism financing

October 20 , 2018

Photo: AFP

The Financial Action Task Force (FATF) delegation has left Pakistan with 10 ways to counter money laundering and terrorism financing.

In a statement released on October 19, the FATF said it will continue to work with the country and report on the progress made in addressing the identified deficiencies.

Related: FATF in Pakistan for 2 weeks to check money laundering, terrorist financing progress

It “encouraged” Pakistan to consider its list of ways to curb money laundering and terrorism financing. Here’s what it wants us to do:

  1. Show that terrorism financing risks are properly identified and assessed and that supervision is applied on a risk-sensitive basis
  2. Show that remedial action and sanctions are applied in cases of money laundering and terrorism financing and that financial institutions (like banks) are complying with this action
  3. Demonstrate that the authorities are cooperating and identifying and taking action against illegal money or value transfer services
  4. Show that authorities are identifying cash couriers (like those involved in the hawala and hundi system) and enforcing controls on illicit movement of currency
  5. Improve inter-agency coordination, including between provincial and federal authorities
  6. Demonstrate that law enforcement agencies are identifying and investigating the widest range of terrorism financing activities and that investigations and prosecutions target designated persons and entities as well as persons and entities acting on their behalf
  7. Show that terrorism financing prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary
  8. Demonstrate implementation of targeted financial sanctions against all designated terrorists and those acting on their behalf
  9. Demonstrate enforcement against violations including administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases
  10. Demonstrate that facilities and services owned or controlled by designated person are deprived of their resources and the use of the resources

The FATF placed Pakistan on its grey list in June for not doing enough to fight money laundering and terrorism financing. A delegation of the international watchdog spent two weeks in Pakistan and held several high-level meetings with officials to discuss ways for it to get off the grey list and avoid being placed on the black list.

 


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