The Asia-Pacific Group (APG) on Money Laundering is an inter-governmental organization comprising 41 members within the Asia-Pacific region, has placed Pakistan as a member of the “Enhanced Follow-Up” list over improvements in the country’s technical compliance with Financial Action Task Force (FATF) recommendations regarding money laundering, terrorist financing and financing of proliferation.
The Fourth Follow-Up Report (FUR) of the mutual Evaluation of Pakistan released by APG indicates it is clear that Pakistan has made significant progress in fixing the technical compliance issues that were identified in its mutual evaluation report (MER) and has 38 recommendations rated as being compliant or mostly in compliance (C/LC).
Pakistan has improved its score to be largely in compliance with two recommendations and partly fully compliant and compliant with one recommendation per.
“The report’s conclusion states that overall Pakistan has made good progress in addressing the technical compliance problems found in its MER and has been re-rated as Compliant with R.33, Largely Compliant with R.28 and R.37, and Partially Compliant with R.38.”
Recommendation 28 Re-Rated to Largely Compliant
The report also discusses the aspect) which is the basis for the evaluation on each recommendation. In the case of R.28, Pakistan has implemented the proper and adequate controls for DNFBPs but minor deficiencies exist in relation to the oversight of accountants by ICMAP/ICAP , and lawyers since they don’t include individuals who associate with criminals. The risk-based supervision of DPMS as well as real estate and accountants has been implemented. supervision is now in place for lawyers. The remaining issues are judged as minor, taking into consideration the overall supervision implementation of DNFBPs, according to the report.
Recommendation 33 Re-Rated to Compliant
For R.33 According to the document, Pakistan is now keeping comprehensive information on issues that affect the efficiency and effectiveness of their CFT/AML system such as STRs, which are distributed and received; ML/TF investigations, prosecutions and convictions; property being frozen or confiscated as well as mutual legal assistance or other requests from international organizations for cooperation that are made and accepted.
Recommendation 37 Re-Rated to Largely Compliant.
For R.37 The report states that, since the year 2020, FUR Pakistan has changed it’s MLAA (s.5) so as to eliminate the most significant flaw identified by an excessively restrictive conditions in relation to the requirement for notification to the person who is subject to MLA requests. Pakistan has also issued revised MLA guidelines to all MLA institutions that are involved in MLA processes. MLA process.
There are however a few flaws in the plan for aiding in obtaining restraint orders in all situations. This is evident in R.38 however it also causes minor deficiencies within the context of R.37. The minor defect remains in relation to the scope of predicate offenses, and it also is a result of.
Recommendation 38 Re-Rated to Partially Compliant
For R.38 The report states that, since the October, 2020 FUR, Pakistan has amended the MLAA (s.5) to fix the main flaw that was identified in the overly restrictive provisions concerning the need to notify to the subject 8 to MLA requests.
Further changes to the MLAA permit assistance based on non-conviction-based confiscation proceedings. Pakistan have also released MLA guidelines to all MLA involved agencies to help facilitate the speedy MLA process.
There are however a few flaws in the plan to provide assistance in obtaining restraint orders ex parte in every circumstance. Although the MLAA is applicable to certain circumstances which restraint orders are able to operate ex part, there are situations in which restraint orders are only able to be obtained by notice and another situation in which the MLAA is not clear. These ambiguities with restraint are especially troubling since ex part restraint is a vital necessary step in ensuring that the law is properly supported the confiscation process with notice, so greater weight has been given to this omission and it is a significant addition.
A mutual assessment report (MER) for Pakistan was approved in August of this year.