KARACHI: Pakistan is unlikely to be placed on the blacklist of the global financial watchdog as the country has made enough progress to meet international anti-money laundering and terror financing standards, a brokerage said on Monday. “Since a comprehensive action plan has already been submitted, we believe that chances of Pakistan to be placed on the blacklist in the ongoing FATF (Financial Action Taskforce) meeting is least likely, contrary to the market expectations, as only countries that do not make sufficient progress or fail to provide an action plan are moved to the blacklist,” Topline Securities said in a flash note. “We also downplay concerns of an adverse impact on Pakistan’s economy due to its inclusion in the blacklist in case Pakistan fails to satisfy FATF.” A Pakistani delegation is currently on a visit to Paris to attend FATF meeting that started on June 24 (Sunday). “The week’s meetings will conclude with the third and final plenary meeting on 27-29 June, where they will officially place Pakistan on the Improving Global Anti-money Laundering (AML)/Countering Financing of Terrorism (CFT) compliance’s list, also known as the grey list,” Topline Securities said. This list comprises of jurisdictions with strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. In February, FATF decided to place the country on the grey list from June. The country was previously part of high risk jurisdictions (blacklist) in 2008 and 2012, while it was under jurisdictions that were making sufficient progress (grey list) in 2010 and 2014. Pakistan was removed from the grey list in 2015. Though FATF did not officially announce Pakistan’s placement on the grey list, the US and the UK jointly moved the FATF in February, nominating Pakistan for placement on the grey list and were subsequently joined by France and Germany. Later, Pakistan was asked to submit a comprehensive action plan to be reviewed in the ongoing FATF meeting for countering the financing of terrorism deficiencies. Pakistan has made a lot of efforts to counter financing terrorism and preparing anti-money laundering laws and recently addressed issues raised by the FATF on the tax amnesty scheme. On June 8, the National Security Committee reaffirmed its commitment to cooperate with the FATF, while Securities and Exchange Commission of Pakistan issued Anti-money Laundering and Countering Financing of Terrorism Regulations (2018) on Jun 20. Topline Securities said though Pakistan’s inclusion in the blacklist may hurt its standing in the international landscape, it will not be as severe as recently been portrayed. “This is because when Pakistan was part of the grey list/blacklist (2008-2015), it successfully approached multilateral bodies, floated international bonds and had international trades.” Currently, FATF has officially designated 10 countries under high-risk jurisdictions (blacklist) and jurisdictions that are making sufficient progress (grey list). There are eight countries under FATF’s grey list, namely Ethiopia, Iraq, Serbia, Sri Lanka, Syria, Tunisia, Vanuatu, Yemen and two countries under the blacklist, including Iran and North Korea. The FATF and the Middle East and North Africa FATF are holding 6-day joint plenary meetings in Paris to protect the integrity of the global financial system and to contribute to safety and security. The meetings involve delegations from the 203 jurisdictions of the FATF Global Network, as well as the United Nations, International Monetary Fund, World Bank and other partners. FATF identifies jurisdictions with strategic AML/CFT deficiencies in its two public documents: FATF Public Statement (call for action) and Improving Global AML/CFT Compliance and On-going Process that is issued three times a year. FATF does not use grey list/blacklist terminologies Countries that are identified as having deficiencies in their financial system are placed on grey list (ongoing process), while countries that are not making sufficient progress in addressing the deficiencies or have not committed to an action plan are moved to blacklist and termed as high risk jurisdictions (public statement-call for action).<doc-sep>Dr Shamshad Akhtar. Photo: File PARIS: Interim Finance Minister Dr Shamshad Akhtar on Wednesday requested the Financial Action Task Force (FATF) to remove Pakistan from its grey list. FATF is a global body that combats terrorist financing and money laundering. The decision to place Pakistan on the global money-laundering watchdog’s grey list was made during its plenary meeting in February this year. As the crucial meeting of FATF went under way today, the Pakistani delegation — led by Akhtar — apprised the watchdog of steps taken by the country to stem money laundering and terror financing, and put up a robust case on not placing its name on the grey list. According to sources, Pakistan is likely to be granted more time to implement necessary measures to be compliant with anti-money laundering and terrorist financing regulations by the FATF. The six-day meeting of the watchdog is under way from June 24 to 29 in the French capital. Ahead of the latest meeting, the country took steps in keeping with FATF regulations. On June 20, the Securities and Exchange Commission of Pakistan issued Anti Money Laundering and Countering Financing of Terrorism Regulations 2018, in compliance with FATF recommendations. Earlier on June 8, the National Security Committee (NSC) reaffirmed its commitment to cooperate with FATF. “The committee reaffirmed the commitment of the country to work with FATF and other international organisations in achieving common goals and shared objectives,” a statement issued by the Prime Minister Office on the NSC meeting said. Pakistan was also placed on the FATF grey list from 2012 to 2015. The country has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the FATF, a measure that officials fear could hurt its economy.<doc-sep>(Representative image) Key Highlights The Paris-headquartered watchdog body, Financial Action Task Force, yesterday began discussions on the action plan If FATF is satisfied with this plan, it will put Pakistan on the less stringent 'grey list' If FATF isn't convinced, it will go ahead and blacklist Pakistan; a decision is expected on Friday NEW DELHI: To avoid being blacklisted by a global terror financing watchdog, Pakistan has committed to a 26-point action plan to erase sources of terror funding, a plan it envisages implementing over 15 months, reported Pakistani newspaper The Express Tribune. The Paris-headquartered watchdog body, Financial Action Task Force (FATF), yesterday began discussions on the action plan, said sources in Pakistan's finance ministry to the Tribune. If FATF is satisfied with this 26-point promise, it will put Pakistan on the less stringent ' grey list ' like it indicated it would in February. If FATF isn't convinced, it will go ahead and blacklist Pakistan. A decision is expected on Friday. The plan, that the International Cooperation Review Group of the Asia Pacific Group submitted to the terror financing watchdog - which Pakistan committed to - requires Pakistani authorities to proactively cooperate with counterpart bilateral agencies to choke financing to Da'ish, Al Qaeda, and the Haqqani Network, as well as India-oriented terror groups Jamaat-ud-Dawa and its affiliates Lashkar-e-Toiba and Jaish-e-Mohammed, said the Tribune report. Pakistan must give special focus to curb cash smuggling, narcotics trafficking, and misuse of non-profit organisations, particularly funding of all these terrorist groups. "Pakistan will have to deliver on the first goal by January next year and complete all the 26 actions by September 2019," the finance ministry sources said. By May, Pakistan will have to show that terrorism financing prosecutions successfully result in effective, proportionate and dissuasive sanctions against natural and legal persons convicted of terrorism financing offences. And by September 2019, Pakistan will address the key concern of identifying and investigating the widest range of terrorism financing activities like the collection, movement or use of funds.<doc-sep>
New Delhi: Pakistan was bracing itself ahead of being formally named in the “grey list" of countries for its failure to comply with the anti-terror funding guidelines, despite repeated attempts to get Islamabad to cooperate, news reports said. The Financial Action Task Force (FATF), set up in 1989 to combat money laundering, and expanded to include combating terrorist financing in 2001, began its plenary and working group meetings in Paris on Sunday. The decision to place Pakistan on the global money-laundering watchdog’s ‘grey-list’ was made during a FATF plenary meeting in February, but Pakistan was given time to submit its action plan for review during the 24-29 June meeting in Paris. Pakistan was, however, subject to direct monitoring and intense scrutiny by the International Co-operation Review Group on terror financing, pending further review during the June meeting. The case against Pakistan follows its inaction against UN-banned terror groups such as the Taliban and Haqqani Network, Jaish-e-Mohammed, Lashkar-e-Taiba, Jamaat-ud Dawa and its affiliate Falah-i-Insaaniyat Foundation, besides terrorists including Hafiz Saeed and Masood Azhar. Saeed heads the Lashkar-e-Toiba and Azhar the Jaish, both of which target Indian security forces and interests in India and in countries such as Afghanistan. Saeed is seen as the mastermind of the 2008 Mumbai terror attack. The US, backed by Britain, Germany and France, have been leading the push to put Pakistan in the FATF “grey list". Being put on the “grey list" would mean that Pakistan will find it tough to access funds from international markets, which would put pressure on its already vulnerable economy. Ahead of the FATF meet, Pakistan was seen as scrambling to put in place measures that will be seen as compliant with FATF requirement. For instance, on 20 June, the Securities and Exchange Commission of Pakistan issued Anti-Money Laundering and Countering Financing of Terrorism Regulations, 2018, in compliance with FATF recommendations, according a report by Geo TV news channel. And on 8 June, Pakistan’s National Security Committee had reaffirmed its commitment to cooperate with FATF. “The committee reaffirmed the commitment of the country to work with FATF and other international organisations in achieving common goals and shared objectives," a statement issued by the prime minister’s office (PMO) on the NSC meeting said, according to the Geo TV news report. With Pakistan expected to go to the polls on 25 July to elect a new government, given that it is being administered by a caretaker government at present, Islamabad could seek more time from the FATF for full compliance, other media reports said. The possible FATF action comes ahead of Pakistan’s Election Commission, last week, accepting the nomination papers of Talha Saeed, the son of Hafiz Saeed, who also heads the Jamaat-ud-Dawah charity in Pakistan, for contesting the 25 July national elections. According to a news report from Pakistan, Talha Saeed was among 265 candidates fielded by the Jamaat-ud-Dawah for contesting the upcoming polls on the little-known Allah-o-Akbar Tehreek’s (AAT) ticket, registered with the Election Commission of Pakistan. Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.