FATF seeks clarifications on Pakistan’s compliance report

FATF has sought details of measures taken by Pakistan against madrassas belonging to proscribed outfits: sources. Photo: File 

ISLAMABAD: Pakistan has received 150 questions from the Joint Group of the Financial Action Task Force (FATF) in response to the report it had submitted, seeking clarifications, updates, and action against madrassas belonging to proscribed outfits, The News reported.

A top official source told The News it had received a response from FATF. “Yes we did receive a response from FATF on our compliance report through an email. The body raised a set of 150 questions in the email, some of them seeking more data, some clarifications, and most importantly questions related to madrassas and actions taken against them having affiliation with proscribed outfits.”

Pakistan has been given until January 8, 2020 deadline to respond to the 150 questions. The next meeting of FATF meeting is scheduled to be held from January 21 to 24 in Beijing where Pakistan will be given an opportunity to defend the points in the compliance report.

Pakistan is expecting that FATF may grant it another relaxation probably up to June 2020 in its upcoming plenary review meeting, as the February deadline is too short a period for Pakistan to comply with the remaining 22 action plans.

Read also: Pakistan submits compliance report to FATF

The FATF had already granted Pakistan extension till February 2020 in a meeting in October this year.

The task force kept the country on its grey list for an extended period till February 2020. In the previous meeting it had warned that Islamabad would be put on the blacklist if it did not comply with the remaining 22 out of 27 points related to anti-money laundering and counter-terrorist financing identified by the watchdog.

Pakistan successfully managed to escape from ending in the blacklist in the last meeting with the support of China, Turkey, Malaysia, Saudi Arabia and Middle Eastern countries. India had failed to convince the world powers that Pakistan was not cooperating with the watchdog related to terror financing.

The joint working group of the FATF declared Pakistan as largely compliant on 10 points, however, the FATF plenary meeting accepted Islamabad’s compliance only on five points out of 27 action plans.

Read also: Pakistan reiterates commitment to ensure completion of FATF action plan

The financial watchdog said all deadlines in the action plan had now expired. Noting recent improvements, the FATF again expressed serious concern over the overall lack of progress by Pakistan to address its terrorist financing (TF) risks, including remaining deficiencies in demonstrating a sufficient understanding of its transnational TF risks, and more broadly, the country’s failure to complete its action plan in line with the agreed timelines and in light of the TF risks emanating from the jurisdiction.

Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan. The anti-money laundering watchdog has strongly urged the country to swiftly complete its full action plan by February 2020.

The FATF in its previous statement had said, “Should significant and sustainable progress not be made across the full range of its action plan by the next plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdictions to advise their FIs (financial institutions) to give special attention to business relations and transactions with Pakistan.”