Pak army plays vital role to accomplish FATF targets 

The Armed Forces of Pakistan played a vital role along with the Government and its National Institutions to accomplish the FATF targets and maintain the tradition of compliance with the international regulations and laws.

Pakistan has proved to be a responsible state by implementing all the FATF points and its efforts have finally paid off.

India tried its level best to Blacklist Pakistan but Pakistan Army foiled this conspiracy. FATF granted 27 Points Action Plan (focused on Terror Financing (TF) out of which all 27 Points are completed and 7 Points (focused on Money Laundering (ML) are also completed. 

Both the Action Plans comprised of total 34 Action items, and all of them stand addressed in June 2022, after 4 years of consistent implementation of Anti Money Laundering (AML) and Counter Terror Financing (CFT) Systems.

A special cell at GHQ headed by DGMO was established in 2019 on the orders of COAS after consultation with the Government.

When the GHQ cell took over the responsibility only 5 points were completed. This cell established a comprehensive mechanism between more than 30 departments, ministries and agencies and ensure the implementation of these policies.

GHQ cell has formulated a comprehensive strategy and a detailed roadmap to address the concerns of FATF and completed its Action Plan, well before the timelines set by FATF, i.e. January 2023.

FATF teams will undertake an ‘Onsite Visit’ soon to check the sustainability and irreversibility of AML/ CFT Systems in Pakistan by September 2022, which will lead to whitelisting by October 22. 

GHQ cell has strengthened its Anti Money Laundering (AML) and Counter Terror Financing (CFT) Regime to counter vulnerabilities and threats as envisaged during the National Risk Assessment.

GHQ cell demonstrated a significant increase in ML investigations and prosecutions during the last 13 months and reported more than 800 cases of ML.

GHQ cell demonstrated substantial increases in the number and value of assets seized over this reporting cycle, with a 71 per cent increase in the number of assets and an 85 per cent increase in the value of assets seized. 

FATF acknowledged the Progress of Pakistan on listings of designated individuals when UNSC accepted the listing proposal for UNSC 1267 related to one individual. 

Due to continued improvements by this cell in Anti Money Laundering (AML) and Counter Terror Financing (CFT) systems in the country, Terror Financing and Money Laundering have been reduced in Pakistan over the period of last 4 years and stringent mechanisms are in place to defy any future threats.

Overall progress made by Pakistan over last 2 years

Pakistan has enacted the standalone MLA Act 2020 with a substantial increase in the processing of formal/ informal Mutual Legal Assistance (MLA) requests. Pakistan has processed a total of 26,630 international cooperation requests.

FBR has established a dedicated Designated Non-Financial Business and Professions (DNFBP) directorate to monitor AML and CFT compliance by Real Estate Agents and Jewellers operating in the country.

The FBR has undertaken massive activity verifications of more than 22,000 potential DNFBPs and imposed monetary penalties worth Rs. 351 million on the non-compliant DNFBPs.

FBR has completed offsite supervision of more than 1,700 DNFBPs, and in the process to include Real Estate Sector under the folds of Compliance.

Securities and Exchange Commission of Pakistan (SECP), completed its enforcement actions on all types of legal persons and arrangements. A total of 146,697 Legal Persons/ legal arrangements (LPLAs) were inspected and penalties worth Rs. 2,388 Million were imposed on con-compliant LPLAs. 

Money Laundering (ML) investigations have increased to 123 per cent whereas ML prosecutions have almost tripled, during the last 1 year.

Pakistan has provided a comprehensive outline of the ongoing Terror Financing (TF) and Targeted Financial Sanctions (TFS) efforts undertaken by federal and provincial authorities.