Pakistan, keen to exit from the Grey List of the FATF sets ‘New’ rules

Pakistan is about to introduce new guidelines regarding anti-money laundering circumstances and alter the prosecution course of to satisfy its remaining powerful situations, Pakistan was put on the grey list by the Paris-based Financial Action Task Force (FATF), the global watchdog for money laundering and terror financing in June 2018 and the country has been struggling to come out of it.

The changes being made also include the transfer of investigations and prosecution of anti-money laundering (AML) cases from police, provincial anti-corruption establishments (ACEs) and other similar agencies to specialised agencies.This is part of two sets of rules including the AML (Forfeited Properties Management) Rules 2021 and the AML (Referral) Rules 2021 under the National Policy Statement on Follow the Money approved by the federal Cabinet meeting a few days ago.

These rules and related notifications for certain changes in the existing schedule of Anti-Money Laundering Act 2010 (AMLA) would come into force immediately to be followed by the appointment of administrators and special public prosecutors for implementation.Several review meetings of the FATF are scheduled to begin in the second week of June, culminating in the next FATF plenary on June 21-25.

The three outstanding action points (out of a total of 27) include (1) demonstrating that terrorist financing (TF) investigations and prosecutions target persons and entities acting on behalf or at the directive of the designated persons or entities,(2)Demonstrating that TF prosecutions result in effective, proportionate, and dissuasive sanctions; and (3) demonstrating effective implementation of targeted financial sanctions against all designated terrorists, particularly those acting for them or on their behalf.

Now, the government has decided to appoint dozens of administrators with the powers to confiscate, receive, manage, rent out, auction, transfer or dispose of or take all other measures to preserve the value of the properties and perishable or non-perishable assets to be confiscated under the AML 2010 rules or court orders.