Impact of FATF on Pakistan's economy , the un talked about Consequences

[AZADPAKISTAN2009]

One of the Key , issues or word that has propped up recently is the FATF , framework , which lives out of United Nation Frame work and it is predominantly run by non Muslim nations

It is run outside of United Nation's framework , because the controversial legislation around it will mostly likely get vetoed in United Nation by Either Russia or China

These days we have seen a acceleration of funds moving out of Pakistan to Foreign lands, what exactly is the reason for this sudden acceleration ? Many Analyst are not sure what is happening they are simply saying perhaps it is due to Import or Export. So what could be a secondary reason?

Well Secondary reason could very well be FATF!

One of the key elements of FATF is that it targets Pakistanis who prefer to keep their life savings in Pakistan , imagine someone who perhaps live overseas but they have their saving in Pakistan with intention of moving to Pakistan for retirement or may be just keeping some funds in Pakistan in case WW3 breaks out who know everyone have their own reason


Under the compliance laws , well the banks can start to send out letters to Pakistanis who have accounts in Pakistan and they live abroad and most Pakistanis are forced to move their funds out and transfer their funds to their adopted country. Even if that is against their wishes


Under the rules of this engagement we may have received $0 from abroad but chances are alot of investors and Pakistanis might stop keeping funds in Pakistan , due to these predatory laws being introduced


No one has ever done a study due to these laws just how many Pakistanis have opted to move their funds out of Pakistan


Mean while , Pakistan's request for criminals to be extradited is always rejected
https://defence.pk/pdf/threads/inte...sain-nawazs-extradition.612422/#post-11350981

 

[Placemat]

My friend works in a global bank with some ops in Pak they said they are prepping for sanctions for Pak by configuring their IT systems. They need to be ready for processing should it happen. The funny thing he said was this is the first time they are actually prepping for Pak .just to let you know all swift payments have to go thru a system for sanctions check before being sent out for straight they processing an amount more than usd 1m will have to be manually cleared. If they miss aml sanctions check then they may have heavy scrutiny and pay huge fine. So banks are extra careful.

 

[AZADPAKISTAN2009]

Well it is Pakistan's own responsibility that it has allowed violation of trust of it's own citizens by accepting such demands which is practically another reason for flush of money out of Pakistan in last 1.5 years

Devaluation of Rupee approximately started at same time we started to hear about FATF

The manual checks against Pakistan have already been in place

Due to the complex nature of money / checks is why certain financial transfer companies like PayPal have not moved into Pakistan, as any money going to Pakistan the history is tracked and internal documentation is done in these western companies

Compare to financial transfer of money to India , their are million apps which can move funds to India

Many international banks in Pakistan have a second branch in Dubai and mostly Indians are checking these transactions on day to day basis. And same is true about Telecom companies who knows where the data for conversation is routed to unless the systems are 100% owned by Pakistan

 

[Tom M]

Well it is Pakistan's own responsibility that it has allowed violation of trust of it's own citizens by accepting such demands which is practically another reason for flush of money out of Pakistan in last 1.5 years

The manual checks against Pakistan have already been in place

Due to the complex nature of money / checks is why certain financial transfer companies like PayPal have not moved into Pakistan, as any money going to Pakistan the history is tracked and internal documentation is done in these western companies

Compare to financial transfer of money to India , their are million apps which can move funds to India

Many international banks in Pakistan have a second branch in Dubai and mostly Indians are checking these transactions on day to day basis

So what are you trying to imply??

 

[AZADPAKISTAN2009]

Pakistan needs to step up it's game and start to protect it's citizen personal data

 

[Tom M]

Pakistan needs to step up it's game and start to protect it's citizen personal data

But I guess you do agree that Pakistan's compliance and conduct of national/international transactions and banking are below par the international standards and best practices.

 

[AZADPAKISTAN2009]

Pakistan needs to reject FATF and forge our own Path if that means use Russian /Chinese financial transaction system

 

[Placemat]

Well it is Pakistan's own responsibility that it has allowed violation of trust of it's own citizens by accepting such demands which is practically another reason for flush of money out of Pakistan in last 1.5 years

Devaluation of Rupee approximately started at same time we started to hear about FATF

The manual checks against Pakistan have already been in place

Due to the complex nature of money / checks is why certain financial transfer companies like PayPal have not moved into Pakistan, as any money going to Pakistan the history is tracked and internal documentation is done in these western companies

Compare to financial transfer of money to India , their are million apps which can move funds to India

Many international banks in Pakistan have a second branch in Dubai and mostly Indians are checking these transactions on day to day basis. And same is true about Telecom companies who knows where the data for conversation is routed to unless the systems are 100% owned by Pakistan

It's true when I used to be supporting financial applications in one of the global banks, I used to see swift transfers in and out of pak and Dubai and I used to alert my friends in India.

 

[AZADPAKISTAN2009]

 

[Khafee]

@Mangus Ortus Novem @BATMAN @Tps43 @balixd @Horus

Whats the real story?

 

[AZADPAKISTAN2009]

Well it is difficult for none account holders to know as the banks send letters discretely to foreign countries where Pakistani citizens live

 

[Mangus Ortus Novem]

@Mangus Ortus Novem @BATMAN @Tps43 @balixd @Horus

Whats the real story?

Khafee my dear,

In a nutshell a double edged sword.

Primarily FATF is part of US led Global Financial Architecture... SWIFT being one infrastructural piece of it. That's why China developed its own counter to SWIFT. So is Russia trying.

Anyhow, primarily its on the surface to stop money laundering. All banks need to be compliant, including central banks.

EU is already compliant.

Coming back to Pak... well, honestly bank banking and financial sector is complicit in the black money moving operations of the #CriminalEnterprise... all private banks are owned by the Pak elite anyways.

SBP was looking the other way when untracked/validated money was moving around. Still is too an extent. Then there is unofficial money transfer through hundi or so.

FATF on its positive end makes money trackable. So, coming out of grey list would help stopping money laundering out of Pakistan.

Zardari/Sharifs money laundering is a case in point.

On the negative end it would create intrusive impact for financial sector. A pressure tool by India and her masters.

Herein Pak State needs to have a long term Financial Security Policy.

However, the level of mess in all sectors of economic infrastructure... such a policy is going to take a bit more time.

Regarding data of individuals .... Bank of International Settlements has data of every human being on the planet.

We are going through a phase of global power flux. I suspect a parallel Financial Architecture to emerge.

UAE can play as a bridge for both worlds... can become a clearinghouse.

Hope it helped.

Mangus

 

[Mamadouso]

I read on here about politician sending out 100bn Rupee and another sending 50bn like it is small change. This is probably the reason for the economic imbalance in Pakistan.

These banking standards should have been resolved many many years ago but I pity that Pakistan had leader like Benazir and Sharif family who wasted the time and allowed US war economy to victimise Pakistan.

 

[CrazyZ]

The USA has been using the dollar's reserve currency status as weapon for some time now.....its only a matter of time before they turn the screws on Pakistan. Alternative systems have been discussed for some time, Russia and Iran want it badly. I think a gold backed digital currency for external trade transactions should be considered. PKR would only be used internally. Gold from the Reko Diq can be used to back the digital currency....trade with Iran and Russia with such a system should be piloted.

 

[AZADPAKISTAN2009]

Well China and Russia are trying to pioneer an alternative financial model for quite some time