LEARNING OUTCOME:

WHAT IS FATF?
WHY IT WAS CREATED?
Re Continuation of FATF
POWER OF FATF
HOW IT WORKS?
PAKISTAN AND FATF:
• 2012
• 2017
PAKISTAN WORKING
MEASURES THAT SHOLD BE TAKEN BY PAKISAN
 WHAT IS FATF?
FATF is an international organization.
There are 37 members in this organization.
It was created by G7 countries in 1989:
• Canada
• France
• Italy
• Japan
• United Kingdom
• United States
 WHY IT WAS CREATED?
After cold war, soviet union was collapsing due to economic failure.
International currency was being injected in soviet union by illegal
perspective.
 US thought what if soviet union revive it self by this money?
US along with its allies decided to make an organization to stop money
laundering and discourage those countries who are involved in it.
After this soviet union faces down fall and lose the war.
After cold war ,it was dysfunctional because its primary purpose was
fulfilled.
 RE CONTINUATION OF FATF
After 9/11 ,terrorist financing concern arises.
FATF was given another domain to stop terrorist financing, to ensure that no
country is involved in these illegal activities.
 POWER OF FATF
Although this organization involves only 37 countries but if they black list or grey list any
country ,other countries have to take measure against that country.
United Nation is at the backend of this organization. As an observer.
If FATF black listed any country UN will make sure that every country put sanctions on
that country in order to follow FATF rule.
This organization has influenced on whole world as it is supported by UN.
 HOW IT WORKS?
If any country is involved in money laundering or terrorist financing
FATF put that country in grey list and recommend them to work on 40
recommendation :
If they work on that recommendation , FATF will remove its name from
grey list.
• If they don’t work on that recommendation ,FATF will add their name in
black list and put international sanctions on it.
• Iran and North Korea are black listed by FATF.
 PAKISTAN AND FATF
Usama bin laden was found in Pakistan .
Who was declared as international terrorist.
It as a question mark on security agencies of Pakistan.
Pakistan was disobeying UN 2 resolutions:
• United Nation Security Council Resolution 1267
• United Nation Security Council Resolution 1373
These resolution stated that:
• No country is allowed to support any militant group within its territory.
• They will seize its assets.
• Put sanctions on them.
• And if any country don’t follow these rule it will be grey listed .
 2012
In 2012,there were few militant groups who were operating in Pakistan and by
the passage of time their assets were increasing and no sanctions were put on
them.
Those militant group includes:
• Lashkar e taiba
• Jamat ud dawa
• ETC
After 3 years Pakistan exited grey list by taking 3 measures:
 Introduce Anti- Terrorism amendment Act.
 Make internal national security policy. 2014.It was revised in 2015.
 After APS-Peshawar attack ,National action plan was made.
Pakistan worked on its point progressively.
 2017
Lahore high court ,removed all the sanctions from Jamat ud dawa(Militant
group ) leader Hafiz Saeed and unseized his assets that was against the rules
of FATF.
Because of this decision Pakistan was grey listed again in 2018.
FATF recommended 27 recommendations , Pakistan had to work on it in
order to exit grey list.
Additional 6 recommendations were added to these 26 recommendations .
Pakistan worked on 26 recommendations out of 27.
 PAKISTAN WORKING
INDIA AND AMERICAN FACTOR:
America want Pakistan to support it in Afghanistan peace process on American terms and condition ,but It will comprise
Pakistan national interest so Pakistan doesn’t allow it.
India blamed Pakistan’s that militant organization are working in India and spreading terrorism so Pakistan should stop
these groups.
America forced FATF to put sanctions on Pakistan as ,we are not fulfilling American terms and condition.

In 2020, Pakistan introduced new act to accomplish FATF recommendation:

• Anti-Money laundering amendment act 2020
• Anti-terrorism amendment act 2020
• United nations security council amendment act 2020

Organizations working on these acts:

• National counter terrorism authority (NCTA)
• State bank of Pakistan
• Security Exchange commission of Pakistan
• Federal board of revenue (FBR)
 MEASURES THAT SHOLD BE TAKEN BY PAKISAN

1ST MEASURE: Pakistan should stop money laundering with the

help of theses organizations:
•State bank of Pakistan
•Security Exchange commission of Pakistan
•Federal board of revenue (FBR)
Pakistan should sign MOU with countries ,where Pakistan's money
has bee money lauder, to investigate the whole process.
3rd measure:
• Pakistan should build strong relation with other countries.
• So that they can support Pakistan in FATF.