As Pakistan continues to be on the poor list of the Financial Action Task Force (FATF), it will have to pass laws in at least two cases to meet the remaining points of the Financial Action Task Force (FATF) program to meet the June deadline.
According to Dawn’s report, among other things, the Pakistani government will need to submit a revised report within a month to the FATF on legal progress and other steps to be taken to address the remaining issues.
A Pakistani newspaper report said the additional legislation should address the weaknesses of the existing framework, including the detention of those acting or representing designated terrorist organizations or individuals and the prosecution of targeted persons or organizations or those working for them.
The remaining three points of the FATF include indicating that the investigation and prosecution of terrorist finances are directed at individuals and companies operating or on behalf of individuals or organizations; indicating that TF prosecution imposes effective, moderate and prohibitive sanctions; and shows the effective implementation of targeted financial sanctions against all designated terrorists, especially those represented or represented.
The International terrorist group last week kept Pakistan “on its gray list” until June after concluding that Islamabad had failed to address its key issues, in order to fully implement the watchdog program that prepared Pakistan.
The world watchdog in October last year asked Pakistan to present all 27 points this February. However, Islamabad has failed in this.
“So far, Pakistan has made progress in all activities and is now focusing on 24 of the 27 items. With all deadlines set, the FATF strongly urges Pakistan to complete its comprehensive plan before June 2021,” he said. The FATF said in a statement about the plenary outcome last week.
Pakistan’s continuation in the ‘gray’ list means that there will be no respite from trying to get funding in the form of investments and assistance from international organizations including the International Monetary Fund (IMF). Pakistan has been on the FATF gray list since June 2018.
A research paper from the Islamabad-based faith organization recently revealed that Pakistan has benefited from an economic loss of USD 38 billion as a result of the FATF decision.
A research paper entitled “Carrying out the cost of global politics – the impact of FATF graying on the Pakistani economy” states that such graying events from 2008 to 2019, could result in a total GDP loss of USD 38 billion , The Express Tribune reported.
A report released by Thabadlab said the losses were caused by lower spending, direct foreign investment and exports.