Home / Articles / FTAF fiasco

FTAF fiasco

There were tall claims that Pakistan was unlikely to be placed on the grey list of the global financial watchdog as the country had made enough progress to meet international anti-money laundering and terror financing standards, such euphoric environment had been created before and during the previous FATF plenary meeting as well. There is a need to float realistic expectations before such international events.

The Financial Action Task Force (FATF) has formally placed Pakistan on the grey list due to ‘strategic deficiencies’ in its anti-money laundering and terrorism financing regime. The decision came despite Pakistan had demonstrated reasonable progress in three out of four major areas of FATF concerns.  In prevailing World Order, nothing works better than American pressures. During February plenary, the US and the UK went out of their way to by-pass the standard FATF procedures and jointly arm twist the FATF for nominating Pakistan for the grey list in June, regardless of its February-June period effort and progress; they were also joined by France and Germany. Decision is politically motivated and is part of American strategy to pressurize Pakistan to settle some other scores.

Pakistan has undertaken to work towards effective implementation of the Action Plan, while staying in the grey list. A similar situation took place in 2011 when Pakistan was included in the grey list and was taken out in 2015 after it successfully implemented the Action Plan.

FATF identifies jurisdictions with strategic AML/CFT deficiencies in its two public documents: FATF Public Statement (call for action)– commonly known as black list—and Improving Global AML/CFT Compliance— nick named as grey list. It is an on-going process; these lists are updated three times a year. Interestingly, FATF does not use grey list/blacklist terminologies.

Pakistan has undertaken to demonstrate that authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers being used for terrorism financing.

During the intervening period Pakistan government did strenuous hard work to plug the gaps. Ambitious laws were enacted. Finance ministry improved institutional mechanisms for handling anti-money laundering and countering financing terrorism issues. Coordination between the State Bank, Banking institutions and law enforcement agencies had also been strengthened to curb money laundering and terror financing. Pakistan has recently addressed issues raised by the FATF through a tax amnesty scheme, while Securities and Exchange Commission has issued Anti-Money Laundering and Countering Financing of Terrorism Regulations (2018). National Security Committee has also reaffirmed its commitment to cooperate with the FATF.

Through its Action Plan, Pakistan has demonstrated to the world that it was ready to go an extra mile to curb money laundering. Pakistan will have to deliver on the first goal by January next year and complete all the 26 actions by September 2019,” it is indeed a tight schedule. One wonders whether Pakistan has requisite mechanisms in place to implement and steer such an ambitious plan.

Caretaker government would do a great service by forming a national commission to identify and punish all those responsible for letting the things reverse back after Pakistan’s previous journey to blacklist was over. Remember Ayan Ali case? And who protected her? Carrier is enjoying quality life abroad.

About admin

Check Also

Civil and Military judicial systems: Need for bridging the gap

Military judicial systems, the World over, are known for delivering swift, speedy and credible justice during extraordinary times. Especially so when the routine of the run judicial system is unable to deliver justice due to any of the accepted multiple genuine reasons. Post 9/11 setting threw up such extraordinary environment when circumstances had rendered the normal judicial channels ineffective, particularly when it came to punishing hard core terrorists. This situation prevailed for about fifteen years and none of the terrorist was awarded meaningful penalty for heinous crimes, it was often observed that those arrested on these accounts were promptly granted bail and were repeatedly caught committing same crimes again and again. Under these conditions National Action Plan was formulated to counter terrorism and military courts were setup for a limited time. These courts served the purpose and award of meaningful punishments to had core terrorists helped in quelling the waves of terrorism promptly.Military courts were established for two years and during this period civil judiciary was expected to fix its weaknesses and be able to re-takeover the task. However, it failed to do so, so the military courts were asked to carry out the task for another two years; this period is to end in January 2019. However, civilian courts are still no better than what they were in January 2015. It is yet another testimony of the lack of faith in the country’s criminal justice system and the sheer ineptness of political system to reform it. Reasons that led to setting up of military courts continue to persist. And it goes to the credit of swift action by military courts alongside military operations that terrorism is on its fag end. Certainly Army’s Judge Advocate General’s team will have to answer many question, as to why pointed out technical gaps and procedural voids were not plugged-in during the trial proceedings. While at the same time, PHC bench needs to account for basing such decision mainly on technicalities, while mainly ignoring the substance matter, and that too in case of heinous crimes. There are many rungs between capital punishments and outright acquittal and one does not have to go berserk to jump straight from capital punishment to acquittal option without preferring to choose from whole assortment of lower degree punishments. Under the circumstances remanding the case for retrial should have been a win-win situation for all sides. Hopefully, a worthwhile solution would be found out. Army needs to undertake capacity enhancement of its JAG branch to avoid recurrences. And PHC should avoid outright choking of one of the parliament approved and constitutionally established judicial sub-system.

Leave a Reply

Your email address will not be published. Required fields are marked *