FATF & Pakistan

Riaz Maitlo
pcs-2009, css-2011
Introduction
Financial Action Task Force (FATF) was established in
1989 during G-7 summit in Paris

Aims to develop a policy against money laundering &

terror financing

To prevent organized crime, corruption and terrorism

Secretariat in Paris
Policy Objective & Jurisdiction
A- sets standards and operation measures for
combating money laundering

B- identify national –level vulnerabilities with the aim

of protecting the international financial systems for
misuse

37 member countries

Jurisdiction on 200 entities around the world

FATF & Terror Financing
In 2001 its mandate expanded to terror financing.
Financing of terrorism involves providing money or
financial support to terrorist
In 2019 FATF blacklisted North Korea and Iran over
terror financing
Currently 12 countries are in grey list
Bahamas, Botswana, Cambodia, Ethiopia, Ghana,
Pakistan, Panama, Sri lanka, Syria, Trinidad and
Tobago, Tunisia and Yemen
Blacklist: Non Cooperative countries or territories
FATF & Pakistan
In grey –list since 2018

Was in same category during 2012-2015

Due to country’s anti terror laws are not in line with

FATF standards

Not up to standards of UN-resolution 2462 that

pitches criminalising terror financing
FATF & Pakistan
Detention of Masood Azhar and Hafiz Saeed
Freezing of funds, denial of weapons access & travel
ban
Arrest under Maintenance of Public Order Act, not
under Anti Terrorism Act
Lashkir-e-Tayyabh
Jesh-e-Muhammad
Jammat-ud-dawa
Consequences of being in Grey-list
Economic sanctions from IMF, World Bank, ADB etc

Problems in getting loans from donor agencies or

countries

Reduction in international trade

International boycotts
Major Fields under recommendations
Drug trafficking, corruption, bribery

Smuggling, tax crimes, terror financing

Banks procedures, exchange companies, real estate

Hawala/hundi, including National saving and

Pakistan post
Important legislations
Islamabad capital territory waqf properties Bill 2020
Anti Money Laundering Bill 2020
Anti Terrorism (third amendment) Bill 2020
Mutual legal assistance (criminal matters) Act 2020
Foreign exchange regulation (amendment) Act 2020
NACTA (amendment) Act 2020
Control of Narcotics substance (amendment) Act 2020
Regional Political Dynamics