FATF Finds Pakistan Lacking on Several Linked Goals

The Asia-Pacific Group (APG) on Money Laundering has ranked Pakistan’s level of effectiveness as low on 10 out of 11 international goals on anti-money laundering and combating the financing of terror (AML/CFT), reported Dawn. The task force had found Pakistan compliant on 34 points in February this year and had decided to field an onsite mission to verify it on the ground before formally announcing the country’s exit from the grey list. Under the FATF-APG assessment mechanism, effective ratings on “Immediate Outcomes” reflect the extent of the effectiveness of a country’s measures. The assessment is conducted based on 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve. However, this has no direct effect on the expected exit of Pakistan from FATF’s grey list during its 18-22 October plenary in Paris. The APG noted that Pakistan had a low level of effectiveness on 10 “Immediate Outcomes (IOs)” under international standards against money laundering and terror financing. The first IO on which the effectiveness is rated as moderate is that money laundering and terror financing are understood and actions coordinated domestically to combat money laundering and the financing of terrorism and proliferation. There are nine other IOs in which Pakistan has a ‘low level of effectiveness. These include goals that require that money laundering offenses and activities are investigated and offenders are prosecuted and proceeds and instrumentalities of crime are confiscated. Furthermore, Pakistan has low effectiveness on goals that require that terror financing offenses and activities are investigated and persons who finance terrorism are prosecuted.