FATF Delisting Marks Pakistan’s Progress Against Terrorism Financing

After four years of relentless scrutiny, Pakistan is finally off from the ignominious “grey list” of the Financial Action Task Force (FATF). The FATF is a global watchdog against money laundering and terrorist financing. Due to deficiencies in its legal, financial, regulatory, investigative, prosecutorial, judicial and non-government sectors to combat money laundering and combat terrorist financing, Pakistan was added to the FATF gray list (jurisdictions subject to “regulatory supervision”). increased”) in June 2018. .

This FATF move is a sigh of relief for Pakistan, which is struggling with intersecting economic, political and climatic catastrophes. However, his removal from the gray list should not distract the government and institutions from continuing to create a society free of corruption and money laundering.

While on the gray list, Pakistan was subjected to perhaps the most challenging and comprehensive plan of action ever given to any country. It was also subject to FATF dual evaluation processes with different deadlines. According to the official FATF reportOverall, Pakistan has made good progress in addressing the technical compliance deficiencies identified in its Mutual Evaluations Report (MER). As a result, Pakistan has been requalified on a few recommendations and is now “largely compliant” or “compliant” with 38 FATF recommendations, which is huge progress.

Pakistan’s difficulties with regard to corruption and money laundering are the result of deep-seated, multifaceted problems and miscalculations. For the same reasons, efforts to establish holistic and effective management to counteract these serious problems were weak and flawed. Although the FATF gray list had its political undertones, it was a blessing in disguise for Pakistan’s almost non-functional legal framework for countering money laundering and terrorist financing, both of which are of significant interest to Pakistan itself.

In light of the gray list, Pakistan rigorously overhauled its entire legal system, pursuing a process of focused institutional reform and capacity building to handle terrorist financing. The government also worked hard to strengthen the financial, regulatory, investigative, judicial and prosecutorial frameworks, as well as the participation of the non-governmental sector. Pakistan made significant progress in addressing many loopholes and specific militant groups of interest to the FATF.

Do you enjoy this article? Click here to subscribe and get full access. Only $5 a month.

in a next edited volume, “Countering Terrorism and Criminal Financing,” I contributed a chapter that critically analyzes Pakistan’s counterterrorism and terrorist financing measures. It highlights the actions taken to prevent the flow of terrorist financing and how Pakistan is countering the financing of terrorism and organized crime by engaging with national and regional partners.

Following its delisting, Pakistan should not lose its momentum. Islamabad should continue to improve the terrorist financing investigation process and capacity building of the institutions involved. There has been a significant improvement in the legal sector, but some efforts are still required to make it more effective. There is a need to invest in capacity building and practical training for the judiciary, law enforcement agencies (LEAs), judges, lawyers, prosecutors, police and investigators, and other actors involved in the investigative process. LEAs need to be better equipped and more software-based analytical tools and technical devices installed to improve the efficiency of the entire process. Large-scale inspections and audits of NGOs, charities, seminars and fundraising events must be carried out. Strict non-discriminatory regulations are required in the implementation of the laws. Otherwise, the whole effort will be unproductive and may even backfire in the future.

Evading the FATF list should not be Pakistan’s ultimate goal. Instead, the strengthening of institutions and the timely implementation of measures to counter money laundering and the financing of terrorism for peace, stability and the general progress of the country must be the priority. The events of recent years have been fruitful and constructive, in particular for the criminal justice system.

This removal from the gray list should help encourage future efforts, as the government still needs to analyze what steps have worked so far and what amendments are needed for the future. Pakistan has yet to track down those involved in corruption and money laundering, as Pakistani money should not be used in any criminal activity outside or within the country, nor should it end up in foreign accounts.

Source link

Leave a Reply

Your email address will not be published.