ISLAMABAD: The Asia Pacific Group, a regional body of FATF, in its second Mutual Evaluation Report (MER), found that out of 40 recommendations, Pakistan has been declared compliant or largely compliant on 31 recommendations in order to combat money laundering and terror financing.
“Pakistan has 31 Recommendations rated C/LC. Pakistan will move from enhanced (expedited) to enhanced follow-up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures. Pakistan submitted its third progress report in February 2021,” the MER released by APG report stated on Friday.
The Asia/Pacific Group on Money Laundering (APG) is an inter-governmental organization consisting of 41 members in the Asia-Pacific region, as well as organizations and observers from outside the region.
Pakistan was rated PC in its 2019 MER for R.1. While Pakistan had conducted a National Risk Assessment (NRA) on ML and TF in 2017 (2017 NRA), the MER identified gaps in the process of developing and identifying threats, vulnerabilities and risks. The assessment of TF risk was identified as ‘perfunctory only’.
The MER also found that the 2017 NRA had not yet been widely circulated to private sector stakeholders and that sectors assessed as higher risk or higher vulnerability in Pakistan were not yet subject to comprehensive AML/CFT measures. The February 2020 FUR found that Pakistan had made progress to identify, assess and promote an understanding of ML/TF risks and align resources and implementation accordingly, however moderate deficiencies remained in relation to obligations for Designated Non Financial Business and Professionals (DNFBPs), Pakistan Post and CDNS, and there were minor deficiencies remaining in c.1.1, 1.5, 1.8, 1.9 and 1.12. 17. Since the February 2020, FUR Pakistan has amended the AMLA to include general obligations for reporting entities (REs), including DNFBPs, to identify, assess and understand their risks and implement a compliance programme to address those risks.