The report disagreed with Pakistan’s self-assessment that it only faces “medium” category risks, saying that national regulators
like the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan – had very limited understating of money laundering and terror financing regimes.
“Competent authorities have varying levels of understanding of the country”s money laundering and terror financing risks, and the private sector has a mixed understanding of risks,” the report said.
In June the FATF warned Pakistan to act decisively against terror-financing or face consequences.
It said the country could be blacklisted, placing it alongside Iran and North Korea, unless it fulfilled an “action plan” against UN-designated terrorists operating on its soil, highly-placed sources in the Indian
diplomatic team said.
Although China came to Pakistan’s rescue, it did not oppose the final language of the warning.
Should Pakistan be blacklisted by the FATF, it also risks being downgraded by the International Monetary Fund, the World Bank and the Asian Development
Bank and facing negative assessments from credit rating agencies such as Moody’s, Standard & Poor’s and Fitch.
and other member countries of the FATF have charged Pakistan with failing to take concrete action against Hafiz Saeed, Masood Azhar and other UN-designated terrorists, pointing out that its anti-terror law still remains out of sync with standards set by the
“It’s a serious anomaly that Pakistan’s anti-terror law still remains out of sync with FATF standards and also the latest UN resolution 2462, which calls for criminalising terrorist financing. We
have pointed this out regularly at plenary sessions,” a senior officer told NDTV in June.
Pakistan contends it has done enough
by seizing over 700 properties belonging to the Lashkar-e-Taiba, Jamaat-ud-Daawa, Falah-i-Insaniyat Foundation and the Jaish-e-Mohammed but India and other FATF members have pointed out that seizures do not necessarily indicate compliance.
07 Oct 19/Monday Source: NDTV