Compliance with remaining FATF guidelines requires ‘swift’ legislation: advisor
Statesman Report
KARACHI: As Pakistan got thrown another lifeline until June from the Financial Action Task Force (FATF) on Friday, a member of the government’s economic advisory said it was mainly up to the parliament to act swiftly and make laws that met remaining FATF directions.
Islamabad was placed on the Paris-based terror financing watchdog’s greylist back in 2018 for its lack of adequate controls over terrorism financing. Since then, struggling with a balance of payments crisis, Pakistan was forced to turn to the International Monetary Fund for help and promised a series of measures to crack down on terrorism financing. This is the second four-month extension given to Pakistan to implement its agreed upon action plan.
“The majority of the remaining action items are related to legislations and it depends on the parliament how swiftly it acts to make laws,” Dr. Ashfaque Hassan Khan, a member of the government’s Economic Advisory Council, told Arab News on Saturday.
Pakistan was given 27 points to act on by the Financial Action Task Force, but on Friday, in a statement issued at the end of a week-long plenary meeting in Paris, the organization noted the country had largely addressed only 14 of those points, with varying levels of progress made on the rest of the plan.
“FATF again expresses concerns given Pakistan’s failure to complete its action plan in line with agreed timelines and in light of the TF (terrorism financing) risks emanating from the jurisdiction,” the intergovernmental body said.
The FATF also warned that failure to comply could lead to further penalties, including the country further downgraded to a blacklist. With hardly four months to go before the next FATF review, relief will be temporary with the new deadline looming over the horizon.