The Pakistani government is to bring in a swathe of new rules and procedures with the goal of ending its three years on the Financial Action Task Force’s grey list which subjects it to increased monitoring.
Specialised agencies will be set up to investigate and prosecute anti-money laundering (AML) cases in place of police, provincial anti-corruption establishments and other agencies.
The government will also introduce new rules on forfeiture, management and auction of properties and assets related to AML cases.
Out of 27 conditions in an FAFT action plan, Pakistan still needs to address three to be removed from the grey list.
They are demonstrating that: terrorist financing investigations and prosecutions target persons and entities acting on behalf of or at the directive of the designated persons or entities; such prosecutions result in effective, proportionate and dissuasive sanctions; and effective implementation of targeted financial sanctions against all designated terrorists, particularly those acting for them or on their behalf, Pakistani newspaper Dawn reported.
The government also has to issue a national policy statement on ‘follow the money’, committing it to tackling money laundering and terrorist financing as a matter of priority and protecting the financial system – and the country’s broader economy – from criminality by ensuring dirty money does not find its way into the financial system.
After a series of reviews, the FATF will decide the next steps on Pakistan’s AML progress at its next plenary session scheduled for 21-25 June.
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