ISLAMABAD – Pakistan has achieved compliant rating in 31 out of 40 recommendations of the Financial Action Task Force (FATF) and this shows how tirelessly the government is working to get the country removed from the grey list of the global body.
This was stated by the Ministry of Finance in a press release quoting the second Mutual Evaluation follow-up Report of Pakistan published by the Asia Pacific Group on Money Laundering (APG).
These results are also a manifestation of the irreversibility and sustainability of the complete process in bringing Pakistan on a par with the Global Anti-Money Laundering and Counter Financing of Terrorism standards.
The APG had published results of the Pakistan’s second Mutual Evaluation follow-up Report on June 2, 2021.
As per the report, Pakistan has achieved compliant/largely compliant rating in 31 out of 40 FATF Recommendations in Technical Compliance.
An upgrade of 21 Recommendations within this short period of time remains unprecedented in FATF history, the press release said.
FATF’s Mutual Evaluation Report (MER) of jurisdictions is assessed in two domains i.e., Technical Compliance/Legal Instruments (40 FATF Recommendations) and Demonstration of Effectiveness (11 Immediate Outcomes).
Pakistan’s MER was adopted in October 2019 in which Pakistan was rated compliant and largely complaint in 10 out of 40 FATF Recommendations for the Technical Compliance. After adoption of MER, Pakistan was placed under Post Observation Period by FATF which expired in February 2021.
During the said period, Pakistan carried out major legal reforms with the enactment of 14 federal laws and three provincial laws along with the relevant rules and regulations.
The laws not only strengthened the system in Pakistan but also brought in sustainability. Pakistan submitted its report to FATF on its Technical Compliance on October 1, 2020.
The APG has acknowledged that Pakistan has made a notable progress in addressing the Technical Compliance deficiencies identified in its MER and has been re-rated compliant /largely compliant in 31 out of 40 FATF Recommendations. Pakistan has also submitted re-rating requests to APG on four more recommendations in next follow-up report which are under review by APG.
The technical upgrades achieved will help manifest achievement of effectiveness in 11 immediate outcomes of the APG MER process. As a result of this substantial progress, APG has decided to move Pakistan from enhanced (expedited) to enhanced follow-up; and Pakistan will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures.
Meanwhile, Federal Law Minister Farogh Naseem said that Pakistan has made a significant progress to address the FATF challenges.
“At the advent of our Government in August 2018, out of 40 Recommendations prescribed by FATF, Pakistan had complied with only 10 Recommendations. As we stand today, nearly after two and a half years, we have complied with 31 out of 40 of FATF Recommendations. This was indeed a gigantic task which Pakistan has achieved,” he said.
He also congratulated Pakistanis and Prime Minister Imran Khan on the “great achievement”.
