Pakistan says “no question” of being blacklisted by FATF over terror funding controls

“There is absolutely no question of Pakistan’s degradation to the blacklist,” Dr. Firdous Ashiq Awan, Prime Minister Imran Khan’s Special Assistant on Information and Broadcasting, told Arab News. (PID)

• Taking “all necessary measures” to get off watchdog’s gray list, PM’s adviser on information says
• Pakistan has until October to improve its counter-terror finance operations or face further action, including sanctions

ISLAMABAD: There is “no question” of Pakistan being downgraded from a gray to a blacklist by a global financial watchdog this October for failing to curb money laundering and counter-terrorism financing, the prime minister’s top adviser on information said on Tuesday. 
Last year, the Financial Action Task Force (FATF) placed Pakistan on a gray list of countries with inadequate terror funding controls. In June, the watchdog said Pakistan had until October to improve its counter-terror finance operations. 
If the South Asian nation does not comply with an agreed-upon action plan by then, it could be downgraded to a blacklist, and face sanctions, which would hurt the country’s economy and exports. 
FATF will formally announce its decision in Paris after a plenary that starts on October 13. Before that, Pakistan’s steps to fulfil an action plan agreed in June last year will also be reviewed at a meeting in Bangkok, starting September 5
“There is absolutely no question of Pakistan’s degradation to the blacklist,” Dr. Firdous Ashiq Awan, Prime Minister Imran Khan’s Special Assistant on Information and Broadcasting, told Arab News. “Our progress on different fronts to meet the FATF’s requirements is already before the world.”
“We are taking all necessary measures to ensure hundred percent implementation of the FATF’s action plan ... and are quite optimistic to get off the gray list on the basis of our actions in October,” Awan added. 
The Pakistan government was following a “multi-pronged” approach to meeting FATF’s requirements, the information adviser said, and had moved to strengthen its laws against money laundering and terror financing, ban militant outfits and choke their sources of financing.
“We have plugged almost all loopholes in our financial system, and new laws [against money laundering and financing terrorism] will be passed by parliament soon,” she said.
Last week, Pakistan’s finance ministry rejected as baseless Indian media reports that Islamabad was put on a FATF black list. India, engaged in a standoff with Pakistan over the disputed region of Kashmir, has pressed for further sanctions against its neighbor.
“We are fully engaged with almost all members of the FATF and our diplomatic efforts will also help counter the Indian propaganda,” Awan said.
According to the 36-nation FATF charter, the support of at least three member states is essential to avoid blacklisting. India – Pakistan’s arch-rival and a co-chair of the joint group of FATF and Asia Pacific Group – has been pushing for Islamabad to be downgraded to the black list. 
FATF has asked Pakistan to work on implementing its action plan to address its strategic deficiencies, including by: (1) adequately demonstrating its proper understanding of the TF (terror financing) risks posed by the terrorist groups , and conducting supervision on a risk-sensitive basis; (2) demonstrating that remedial actions and sanctions are applied in cases of AML/CFT (anti-money laundering/counter terrorist financing) violations, and that these actions have an effect on AML/CFT compliance by financial institutions; (3) demonstrating that competent authorities are cooperating and taking action to identify and take enforcement action against illegal money or value transfer services (MVTS); (4) demonstrating that authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers being used for TF; (5) improving inter-agency coordination including between provincial and federal authorities on combating TF risks; (6) demonstrating that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity and that TF investigations and prosecutions target designated persons and entities, and persons and entities acting on behalf or at the direction of the designated persons or entities; (7) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions and enhancing the capacity and support for prosecutors and the judiciary; and (8) demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) against all 1267 and 1373 designated terrorists and those acting for or on their behalf, including preventing the raising and moving of funds, identifying and freezing assets (movable and immovable), and prohibiting access to funds and financial services; (9) demonstrating enforcement against TFS violations including administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases; (10) demonstrating that facilities and services owned or controlled by designated person are deprived of their resources and the usage of the resources.