Cell will work under FBR's DG intelligence
The government has constituted a special Financial Action Task Force (FATF) cell to ensure that the action plan agreed by both Pakistan and FATF authorities is implemented.
According to a notification issued by the Revenue Division, the FATF cell will work under the director-general of FBR’s intelligence and investigation wing.
The FATF cell has been allowed to seek information required for FATF related matters from other government departments to “ensure timely completion of FATF related Action Plan”.
In June, the FATF had given Pakistan till October to improve its “counter-terrorist financing” operations in accordance with the agreed plan.
In a statement, the FATF had said that “not only did Pakistan fail to complete its action plan items by January deadline; it also failed to complete its action plan items due May, 2019.”
“The FATF strongly urges Pakistan to swiftly complete its action plan by October, 2019 when the last set of action plan items are set to expire,” the FATF statement had said. “Otherwise, the FATF will decide the next step at that time for insufficient progress.”
Based out of Paris, the FATF is an inter-governmental body that combats money laundering, terrorist financing and threats to the international financial system. It put Pakistan on its grey list in June 2017 because of deficiencies in the country’s Anti-Money Laundering (AML) and Countering of Terrorist Financing (CTF) regulations.
Pakistan was told to block financial loopholes, terror financing and money laundering by implementing the 27-point action plan.
Being on the grey list doesn’t come with any sanctions, but if we remain on this list, we face the risk of being put on the black list. This is where it gets problematic.