Comment by Riaz Haq on June 16, 2019 at 8:10am

#Pakistan to stay off the #FATF black list. #India's motion with FATF to blacklist Pak defeated by #China, #Malaysia and #Turkey as the minimum 3 countries required. https://nation.com.pk/16-Jun-2019/pakistan-can-no-longer-be-blackli...

Prime Minister Imran Khan telephoned Malaysian Prime Minister Datuk Seri Dr Mahathir Mohamad in London Saturday to thank Malaysia for its support of Pakistan’s bid to avoid being blacklisted by the Financial Action Task Force (FATF).

Dr Mahathir, who is in the United Kingdom for a three-day working visit, took the six-minute call at the Malaysian High Commission.

Malaysia’s support was seen as crucial in helping to stop Pakistan from being blacklisted after India had put forth a motion with FATF to blacklist the country for money-laundering activities linked to terrorism. With Malaysia’s backing, Pakistan now has the support of three nations.
After taking the call from Imran, Dr Mahathir told the Malaysian media present at the High Commission that Malaysia showed its support to Pakistan as the country has upped its war against money laundering. “We decided based on the rule of law. Not due to animosity.

We admit that money laundering is a major problem and it is happening because of the borderless world that allows free flow of capital,” he said, adding there was no point blacklisting any particular nation.

He also pointed out that the free flow of capital has affected other countries as well, including Malaysia, where capitalists have invested huge amounts of money in the share markets pushing up share prices. “At the end of the day, they sell their shares for a profit and take back their capital and their earnings at the expense of the countries they invested in,” he said.

Dr Mahathir also touched on the irony of trade wars, where the world promoted trade on one hand and on the other imposed sanctions. “In the end many innocent nations such as Malaysia are also affected. Hence, though we have no problem with Iran, we cannot trade with the country because of the sanctions. The trade war with China is also affecting us,” he said.

Meanwhile, after Dr Mahathir took the phone call from Imran, Foreign Minister Datuk Saifuddin Abdullah told reporters that with Malaysia’s support, Pakistan has three nations behind it, with the other two being China and Turkey, and hence it could no longer be blacklisted.

Comment by Riaz Haq on December 11, 2019 at 2:25pm

Why #India's #Pakistan policy needs a rethink. #India’s campaign to get Pakistan placed on the ‘black list’ of Financial Action Task Force (#FATF) has failed. Pakistan is unlikely to be ever placed on the black list. #Modi #Hindutva http://www.ecoti.in/pARckb via @economictimes

First, nobody wants Pakistan to implode under the burden of its non-performance, largely for geopolitical reasons, but also because Pakistan has demonstrated a renewed willingness to address its economic and social problems.

Second, western powers are competing with the Eurasian alliance of China and Russia to retain influence in Afghanistan and Pakistan. And third, India’s case against Pakistan is increasingly viewed as having become weaker thanks to the many controversial decisions of the Narendra Modi administration that have a direct or indirect bearing on the bilateral relationship.

While India does get endorsements from governments around the world for its genuine concern about cross-border terrorism, most sign up as an act of courtesy, and in the interests of their business in India.

Comment by Riaz Haq on January 18, 2020 at 7:42am

Bright side of the moon. #Pakistani state is finally, really, actually, seriously fighting to eradicate monsters it had spawned decades ago for national security. They had become a huge liability for #Pakistan in every sense. #TLP #Taliban #militants #FATF

https://www.dawn.com/news/1529030/bright-side-of-the-moon

AWAY from the gloom of governance, there exist some genuine reasons to smile. Here are 10 happy ones:

— The Pakistani state is finally, really, actually, seriously fighting to eradicate monsters it had spawned decades ago for national security objectives. Regardless of whether they served any purpose or not, they had become a huge liability for the country in every sense of the word. The state was, sadly, the last to realise it. Or was the realisation forced upon it? In any case, the battle to put the demon/genie back in the bottle started some years — perhaps after the APS tragedy — and was speeded up after the FATF threat of blacklisting. Gone are the days when duplicity was a policy tool employed to maximum effect in order to deflect criticism, divert pressure and distract local and global opinion. Today, it seems, the state strategy is on the same page as state belief.

— This is a remarkable turnaround. Within a surprisingly short span of four years, terrorism has been contained to a degree where it is no more a central threat to life. The state has also effectively cracked down on terror funding (courtesy FATF pressure) and even the social network that nourished extremist ideologies is now feeling the pressure. How many countries in the world can claim to have defeated terrorism of such magnitude in under five years?

Today, it seems, the state strategy is on the same page as state belief.

— FATF is a threat and a blessing. If Pakistan is blacklisted, we are in serious trouble. The IMF programme will come to an end, remittances will be severely affected, foreign investment will start drying up and the economy will nosedive. But it is also a blessing because the threat has forced the state to realise the folly of its orientation and take measures against terror funding and money laundering (including legislation) that it would not have done so swiftly. FATF will decide next month if Pakistan is to be blacklisted or taken off the grey list. It could also decide to keep Pakistan on the grey list for longer. The state has in the meantime undertaken reforms that will help us tremendously in forging a new direction for the future by jettisoning the baggage we have been lugging along for decades.


— For once, we are seen as the sane voice on the subcontinent. While Modi’s India has plunged into an orgy of communal violence, bigotry and state-sponsored, sanctioned and legislated religious persecution — and while its civil and military leadership spews provocative and dangerously escalatory threats towards Pakistan — we are the ones urging caution, sense, and dialogue in return. India is suddenly seen as the bratty, immature, unstable, and flabby teenage thug while Pakistan is the sensible, reasonable and mature adult that wants to stop the teenager from becoming a menace to society and ending up harming himself and everyone else.

— Remember Balakot? India bombing our trees and wreaking vengeance on a crow? Remember the red faces in New Delhi? Then our response and how PAF hunted down two Indian aircraft? And Abhinandan and his chai and our gracious gesture of releasing him unconditionally? In those few days, Pakistan displayed many traits that should uplift our spirits: giving Indian military arrogance a bloody nose, finding new heroes among our armed forces, revelling in our prime minister being a much taller statesman than his Indian counterpart, treating a prisoner humanely while India wallowed in hate, and telling an anxious world that our restraint against Indian aggression should not be taken for granted. The danger for conflict is very real today, but the last engagement has given us confidence that we as a nation really needed.

Comment by Riaz Haq on January 18, 2020 at 7:43am

Bright side of the moon. #Pakistani state is finally, really, actually, seriously fighting to eradicate monsters it had spawned decades ago for national security. They had become a huge liability for #Pakistan in every sense. #TLP #Taliban #militants #FATF

https://www.dawn.com/news/1529030/bright-side-of-the-moon


— Academic and literary festivals are growing in scale and ambition every year. These events are attracting a galaxy of international women and men of accomplishment to Pakistan and allowing the best and the brightest in the country to gather on a platform and produce fantastic discussions, debates and dialogues. The ThinkFest 2020 held in Lahore last weekend was one such event that had a huge impact not just on our domestic landscape but outside our borders too (full disclosure: I was a participant on discussion panels). The ThinkFest has become a venue for deep policy discussion that generates ideas which are hugely beneficial for state and society. Citizens of all ages mingle with authors, academics, specialists and policymakers in an arena that stimulates healthy exchange of ideas and opinions. The organisers of the festival struggle with funding and sponsorships despite the attention such events attract. The state should support such festivals (and all others that accentuate the world of ideas) so they can scale up and become magnets for positive regional and international attention for Pakistan.

— Tourism is finally centre stage in our policy. Long neglected due to lack of vision, international tourism can put Pakistan on the global map where we can counter the negative stereotype built over decades. Prime Minister Imran Khan may have mishandled many big ticket items but on tourism he deserves all the credit. Single-handedly he has pushed this into mainstream policy and in such a short time the sector is waking up to its tremendous potential. Thumbs up.

— Infrastructure for inter-city travel is world-class. As work on motorways gathers pace, it is not long before you would breakfast in Lahore and reach Karachi by road in time for dinner. Economic benefits will not lag behind.

— Increased governmental and social awareness for more vulnerable and underprivileged segments of society is a welcome trend that is translating into policy. If sustained, this will prod us in the correct direction.

So cheer up. Things are bad, no doubt. And yet there are visible silver linings. May they increase with each passing moment.

The writer is Dawn’s resident editor in Islamabad.

Twitter: @Fahdhusain

Comment by Riaz Haq on October 21, 2022 at 10:18am

Pakistan Removed From Terror-Financing List After Four Years - Bloomberg

A global anti-money laundering watchdog removed Pakistan from its “gray” monitoring list after four years, providing relief for the South Asian nation that is facing a crisis.

The Paris-based Financial Action Task Force said the country “has strengthened the effectiveness” of its regime for anti-money laundering and combating terror financing, and addressed technical deficiencies to meet the commitments of its action plans.



https://www.bloomberg.com/news/articles/2022-10-21/pakistan-removed...


Pakistan has been on the FATF’s monitoring list since 2018 for its inability to combat money laundering and terror financing. It was given a 27-point plan that year and another seven-point action plan in 2021. In September of this year, the watchdog had sent a team to verify steps taken.

The exit will ease access to finances for the country after catastrophic flooding caused losses of around $40 billion to lives and livelihoods. Fitch Ratings and Moody’s Investors Service have downgraded the nation’s credit rating deeper into junk while its bonds traded in distressed territory.

FATF is an intra-governmental body that includes 37 countries and two regional organizations. China, Turkey and Malaysia have lobbied in the past to prevent severe penalties against Pakistan, while India, which accuses Islamabad of funding militant groups operating in its portion of Kashmir, had sought a downgrade to the more severe blacklist

Comment by Riaz Haq on October 21, 2022 at 1:37pm

FATF
@FATFNews
Pakistan and Nicaragua have been removed from the FATF’s Jurisdictions under Increased Monitoring list, often referred to as the 'grey list'. See the full update on the list here➡️ https://bit.ly/3Dj3K9S #FollowTheMoney

https://twitter.com/FATFNews/status/1583499858123448330?s=20&t=...

-------------

Paris, 21 October 2022 - Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.

The FATF and FATF-style regional bodies (FSRBs) continue to work with the jurisdictions below as they report on the progress achieved in addressing their strategic deficiencies. The FATF calls on these jurisdictions to complete their action plans expeditiously and within the agreed timeframes. The FATF welcomes their commitment and will closely monitor their progress. The FATF does not call for the application of enhanced due diligence measures to be applied to these jurisdictions. The FATF Standards do not envisage de-risking, or cutting-off entire classes of customers, but call for the application of a risk-based approach. Therefore, the FATF encourages its members and all jurisdictions to take into account the information presented below in their risk analysis.

The FATF identifies additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. A number of jurisdictions have not yet been reviewed by the FATF or their FSRBs, but will be in due course.

Since the start of the COVID-19 pandemic, the FATF has provided some flexibility to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. The following countries had their progress reviewed by the FATF since June 2022: Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Haiti, Jamaica, Jordan, Mali, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Türkiye, UAE, and Uganda. For these countries, updated statements are provided below. Gibraltar chose to defer reporting; thus, the statement issued in June 2022 for that jurisdiction is included below, but it may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime. Following review, the FATF now also identifies the Democratic Republic of the Congo, Mozambique, and Tanzania.

The FATF welcomes the progress made by these countries in combating money laundering and terrorist financing, despite the challenges posed by COVID-19.

Pakistan
The FATF welcomes Pakistan’s significant progress in improving its AML/CFT regime. Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total. Pakistan is therefore no longer subject to the FATF’s increased monitoring process.

Pakistan will continue to work with APG to further improve its AML/CFT system.

Comment by Riaz Haq on March 29, 2023 at 7:36am

The European Union has removed Pakistan from its “list of high-risk third countries”, a move that is expected to improve conditions for business activity.

https://www.aljazeera.com/news/2023/3/29/eu-removes-pakistan-from-l...

In a statement announcing the news on Wednesday, Pakistan’s Ministry of Commerce said the listing of Pakistan in 2018 had resulted in creating a regulatory burden affecting Pakistani companies doing business with the 27-member bloc.


“The new development would add to the comfort level of the European economic operators and is likely to ease the cost and time of legal and financial transactions by Pakistani entities and individuals in EU,” the statement said.

Foreign Minister Bilawal Bhutto-Zardari said in a Twitter post that Pakistani businesses and individuals “would no longer be subjected to Enhanced Customer Due Diligence” by European legal and economic operators.


The high-risk third countries list includes nations that, according to the EU, do not have a robust enough regulatory and legal system to prevent financial crimes and “terrorism” financing that could pose significant threats to the financial system of the bloc.

When a country is added to the list, it is subjected to particularly enhanced scrutiny and additional measures that increase the cost of doing business.

The Pakistani entities that will no longer be subjected to enhanced EU scrutiny include credit and financial institutions, auditors, external accountants, tax advisers, notaries and independent legal professionals, among others.

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