Pakistan approves laws to get off Financial Action Task Force grey list

Islamabad: The Pakistan government has ramped up legislative measures to meet the criteria by global watchdog Financial Action Task Force (FATF) ahead of a decisive meeting.

The parliament has passed four more bills aimed at fulfilling the FATF obligations, including the crucial Anti-Money Laundering (Second Amendment) bill, moved by Prime Minister’s Advisor on Parliamentary Affairs Dr. Babar Awan. All the bills were passed with a majority vote.

The anti-money laundering bill gives more powers to investigating agencies to combat money laundering and terror financing and recommends an increase in sentences and fines.

The government managed to get the bill approved despite a ruckus in the parliament over the role of the National Accountability Bureau (NAB). Opposition members questioned the inclusion of NAB among the investigation agencies mentioned in the anti-money laundering bill. Defending the bill, Law Minister Farogh Naseem rejected the Opposition’s objections regarding the NAB’s role, clarifying that money laundering is already a scheduled offence under NAB laws.

The Limited Liability Partnership (Amendment) Bill, 2020 and The Companies (Amendment) Bill, 2020 will ensure compliance with FATF’s recommendations on anti-money laundering and countering the financing of terrorism by strengthening existing laws.

Islamabad Capital Territory Waqf Properties Bill, 2020, is aimed at proper management, supervision and administration of Waqf properties in the capital territory. After the approval from Senate, the bill will put all the Waqf (charitable endowment) properties, including mosques, shrines and other buildings, and contributions and donations to such places under the control of the government.

To steer the country out of the FATF grey list, Pakistan’s Senate recently approved a number of laws including Islamabad Capital Territory Trust Bill, Control of Narcotic Substances (Amendment) Bill 2020, the United Nations Security Council Amendment Bill and the Anti-Terrorism Act Amendment.

Pakistan has introduced a series of administrative and legislative measures during the last two years, fulfilling fourteen of the 27-point criteria required by the FATF. To make progress on the remaining thirteen points and avoid downgrading from the FATF’s grey list to the blacklist, Pakistan would have to demonstrate effectiveness in a multitude of areas for FATF compliance, such as taking action against illegal money or value transfer services (MVTS), measures to enhance investigation of terror financing, transforming madrassas into schools and health units into official establishments, seizure of properties and prosecution of banned outfits and proscribed persons and cutting off their funding and more.