Featured To comply with FATF conditions, Pakistan needs to amend foreign exchange laws within three months

[NewStudent]

Pakistan does not need swift. China has created its own banking channel which Pakistan would be using.

Most of the Pakistan trade and remittances still come from other countries and Pakistan has to abide by their rules. China is although a major trade partner, but still, most of Pakistan's trade is with other countries. Besides, remittances come exclusively from countries other than China.

 

[HalfMoon]

Most of the Pakistan trade and remittances still come from other countries and Pakistan has to abide by their rules. China is although a major trade partner, but still, most of Pakistan's trade is with other countries. Besides, remittances come exclusively from countries other than China.

Most of the countries are replacing US dollars with Chinese Yuan for trade. All remittances will be in Chinese Yuan.

 

[AgNoStiC MuSliM]

In case people forgot, the biggest obstacle to Pakistan enacting the required legislation are opposition law makers from the PPP & PMLN, which shouldn't be a surprise given that the PMLN wasted so many years and a much larger majority where it could have enacted the reforms but instead allowed Pakistan to go into the grey list and then conveniently blamed the military.

Making a presentation before the NA committee, an official of the interior ministry highlighted that certain amendments were essential in the wake of FATF requirements, which were earlier included in anti-money laundering laws.

According to the amendments, the ATA lacks the definition of “agent, economic terrorism” and provision regarding detention of those involved in financial crime for inquiry.

The committee was informed that the proposed amendments will further enhance the applicability of the ATA 1997 in the cases of transfer of money or funds through informal channels, including hawala and hundi.

Besides, new Section 9 (A) has been inserted that relates to preventive detention by federal and provincial authorities to detain any suspect for inquiry as well as to review the applications of aggrieved persons against the detention orders.

The amendments were explained by the officials of the FATF cell in the law ministry and they told the committee that the definition of “economic terrorism” means transfer of money or funds from Pakistan to destinations abroad through any informal channel, including hundi or hawala, where the total amount transferred by any one agent, through a single or multiple transactions within one month, is equal to or exceeds Rs50 million.

The amendments include insertion of Section 9A, in the ATA 1997 is “Any person against whom there are reasonable grounds of believing that he is connected with an offence under this Act may be detained for inquiry for a period not exceeding three months”.

The amendments highlight that detention of economic crime accused will be authorised through a specific or general order passed by the interior secretary or the home secretary of the province, or the relevant officer of armed forces or civil armed forces as the case may be where the provisions of Section 4 of ATA has been invoked.

The amendments allow detention up to three months, and it was stated that police officer of the rank of SP and senior or JIT can conduct the inquiry.

However, the first objection to the amendment was raised by Abdul Qadir Patel, PPP’s MNA, followed by Mohammad Perviaz Malik of the PML-N who said that the amendments could be used for political victimisation.

While the officials requested that the amendments might be approved as they were the requirements of the FATF, chairman of the committee Raja Khurram Shahzad of the PTI deferred the bill and directed the interior ministry to club all the ATA-related amendments.

The committee approved a private member bill by Sanaullah Khan Mastikhel to abolish interest-based lending by non-registered persons; the jurisdiction of the bill was within only the limits of Islamabad district.​

https://www.dawn.com/news/1521993/move-to-include-financial-crime-in-anti-terror-law-opposed

 

[ps3linux]

I find it very interesting that news article from a newspaper whose owners have as much Pakistani interest at heart as much Alice Wells has. A media group which along their brother in arms dawn survive not from the money generated from Pakistan but from the money they get through their shell companies based out of the money laundering factories of the world AKA UAE.

A half-baked article by a person who has no real financial back ground is the basis of a featured thread is a delight to see and a proof of the continuous improvement in pdf's quality of content.

Then debated upon wow, going from FATF to CPEC, double whammy.

unless people like @Jungibaaz , @Mangus Ortus Novem , @blueazure , @Chak Bamu , @fatman17 , @The Accountant , @Shahzaz ud din , few others and may be undersigned who is not only on the advisory but implementation side of financial sector in Pakistan, add value most of it is going everywhere but the topic.

FATF and how few countries used it as a leverage against Pakistan, has actually played more in favor of Pakistan than the other way round, and that is not only a continuous headache for the countries which kept adding conditions to FATF for Pakistan but now becoming an embarrassment for them.

Everyone who needs to know, knows that it is now a political tool rather than a desire to improve Pakistan's financial monitoring capability. Black list is not happening any time now or the future. Pakistan has already complied with most of the conditions put forth. Some are work in progress, regulation have mostly been passed, past implementation and now in the re-evaluation stage including forex.

Where regulation will be updated are bullion and real estate.

As for the businesses internationally coming to Pakistan, things are going to change for Pakistan in a positive manner, not because we have done something special but because of the fact that international political and economic dynamics have changed and they will benefit Pakistan.

Meanwhile please continue contributing.

 

[Cliftonite]

Pakistan does not need swift. China has created its own banking channel which Pakistan would be using.

Which city are you from in Pakistan?

 

[HalfMoon]

Which city are you from in Pakistan?

I am in India not Pakistan.

 

[NewStudent]

Most of the countries are replacing US dollars with Chinese Yuan for trade. All remittances will be in Chinese Yuan.

It still doesnt matter in which currency you are trading, what matters is with which country you are trading and which country is the source of remittance to Pakistan. Besides, no one has replaced dollar with yuan.

 

[HalfMoon]

It still doesnt matter in which currency you are trading, what matters is with which country you are trading and which country is the source of remittance to Pakistan. Besides, no one has replaced dollar with yuan.

Why do you need US dollar if you are sending Rials to Pakistan?

Yes. Most of the world is now trading in Chinese Yuan.

More than 100 countries are now using the RMB for payments with China and Hong Kong
RENMINBI
27 OCTOBER 2016

https://www.swift.com/insights/pres...the-rmb-for-payments-with-china-and-hong-kong

 

[AgNoStiC MuSliM]

Stick to the topic folks, which is FATF, not CPEC or drone attacks

While there are geopolitical games involved in the ancillary of the FATF - the measures are a blessing in disguise and will contribute to the prevention of further looting and corruption of the country’s financial system by oligarchs, feudal lords and other corrupt individuals both part and outside of state machinery.

YES!

Been making this argument from the beginning.

And not a surprise to see which parties are opposing legislation and reforms to bring Pakistan into compliance.

 

[fitpOsitive]

To comply with FATF conditions, Pakistan needs to amend foreign exchange laws within three months

ISLAMABAD: The government will have to pass amendments into Anti Money Laundering (AML) and Foreign Exchange Regulation laws within next three months from the Parliament for complying with the Financial Action Task Force (FATF) conditions.


The FATF has extended deadline for Pakistan till next plenary meeting expected to be held in October 2020, official sources confirmed to The News here on Wednesday. The official sources said that after tragic demise of DG Financial Monitoring Unit (FMU) Mansoor Hassan Siddiqui few months back, the post was fallen vacant but now the government appointed Lubna Farooq Malik, Executive Director SBP, as DG FMU. The notification of her appointment has been issued but she has not joined her new post.

There was proposal on eve of the budget making process for 2020-21 to incorporate some amendments related to Anti Terrorism Act (ATA) and AML as part of Finance Bill but it was rejected and decided that the separate legislations would be pursued to seek approval of Parliament. The government had proposed some changes into non profit organisations (NPOs) and trusts related to income tax laws in order to comply with the FATF requirements.

When contacted, the Finance Ministry high-ups said that the FATF extended the deadline for compliance report till October 2020. The government is working on bringing these changes into different laws and the pending legislation bills would be pursued vigorously. The FATF had placed Pakistan on the grey list in June 2018 and placed 27 conditions for review for complying in one year, till Sept 2019. Pakistan was so far given three extensions of three months each, every time to comply with 27-point action plans. Out of the 27-point action plan, the FATF had so far declared Pakistan fully compliant on 14 points and now there is a deadline of September/October 2020 for complying on the remaining 13 points in a bid to ensure exit from the grey list of the watchdog.

According to the list of remaining 13 points of 27 action plan (1) Pakistan will have to demonstrate effectiveness of sanctions including remedial actions to curb terrorist financing in the country; (2) Pakistan will have to ensure improved effectiveness for terror financing of financial institutions with particular to banned outfits; (3) Pakistan will have to take actions against illegal money or value transfer services (MVTS) such as hundi-hawala; (4) Pakistan will have to place sanction regime against cash couriers; (5) Pakistan will have to ensure logical conclusion from ongoing terror financing investigation of law enforcing agencies (LEAs) against banned outfits and proscribed persons; (6) Pakistani authorities will have to ensure international cooperation based investigations and convictions against banned organisations (list provided to Pakistan) and proscribed persons (list provided to Pakistan); (7) The country will have to place effective domestic cooperation between Financial Monitoring Unit (FMU) and LEAs in investigation of terror financing; (8) Prosecution of banned outfits and proscribed persons (list provided to Pakistan); (9) Demonstrate convictions from court of law of banned outfits and proscribed persons (list provided to Pakistan); (10) Seizure of properties of banned outfits and proscribed persons (list provided to Pakistan); (11) Conversion of madrassas to schools and health units into official formations (list provided to Pakistan); (12) To cut off funding of banned outfits and proscribed persons; and (13) Pakistan will have to place permanent mechanism for management of properties and assets owned by the banned outfits and proscribed persons (list provided to Pakistan).

Minister for Industries Hammad Azhar in his budget speech on June 12 stated that in June, 2018 Pakistan was placed under grey list and was required to comply with 27 Actionable Points. Our government has put in unprecedented efforts at all levels to improve its AML/CFT regime to meet the requirements of the FATF Action Plan. In this regard, he said that he has been entrusted with the responsibility of National FATF Coordination Committee. A comprehensive process of legislative, technical and operational improvements has been initiated. Significant results have been achieved in the areas of financial sector supervision, investigations, prosecutions and international cooperation,” he said.

Resultantly, he said, “We have progressed significantly on 27 actionable items included in the FATF Action Plan. Within a period of one year, 14 items have been largely addressed and 11 partially addressed whereas in two areas, concerted efforts are being made for implementation.”


https://www.thenews.com.pk/print/67...end-foreign-exchange-laws-within-three-months

Out class bhai Jan.
Yeh chez FATF.

 

[Enigma SIG]

FATF and how few countries used it as a leverage against Pakistan, has actually played more in favor of Pakistan than the other way round, and that is not only a continuous headache for the countries which kept adding conditions to FATF for Pakistan but now becoming an embarrassment for them.

Everyone who needs to know, knows that it is now a political tool rather than a desire to improve Pakistan's financial monitoring capability. Black list is not happening any time now or the future. Pakistan has already complied with most of the conditions put forth. Some are work in progress, regulation have mostly been passed, past implementation and now in the re-evaluation stage including forex.

Where regulation will be updated are bullion and real estate.

As for the businesses internationally coming to Pakistan, things are going to change for Pakistan in a positive manner, not because we have done something special but because of the fact that international political and economic dynamics have changed and they will benefit Pakistan.

Meanwhile please continue contributing.

Actually, yes. This will make it harder for Sharif's and Zardari's to launder money. This was a kick that the system needed.

 

[KhanBaba2]

WEven on Grey list we got lot of FDI coming in, aside from China.

How much. Do you have a list.

 

[AZ1]

No matter what we do, we will be in greylist until certain countries give it a go. I meant one specific country.

 

[NewStudent]

Why do you need US dollar if you are sending Rials to Pakistan?

Yes. Most of the world is now trading in Chinese Yuan.

More than 100 countries are now using the RMB for payments with China and Hong Kong
RENMINBI
27 OCTOBER 2016

https://www.swift.com/insights/pres...the-rmb-for-payments-with-china-and-hong-kong

What would I do with Riyal, if I can't purchase even oil with it? For Yuan, tell me what is the trade balance between Pakistan and China? It is certainly in favor of China, so we would have a deficit of Yuan too. From where you will get Yuans, given our huge trade deficit? We would still need the dollars earned from our trade surplus from other countries to purchase Yuan, for all trade purposes.
For all practical purposes, Pakistan is still using the US dollar and will be using it in the near future. Aside, from conspiracy theorists, Yuan is still not replacing the dollar in the near future.
Most of our export destinations are still Europe and the USA, where in the case of the USA we are having our large trade surplus for several years. So rest assured, Pakistan has to obey FATF rules for the smooth functioning of the economy.

 

[HalfMoon]

What would I do with Riyal, if I can't purchase even oil with it? For Yuan, tell me what is the trade balance between Pakistan and China? It is certainly in favor of China, so we would have a deficit of Yuan too. From where you will get Yuans, given our huge trade deficit? We would still need the dollars earned from our trade surplus from other countries to purchase Yuan, for all trade purposes.
For all practical purposes, Pakistan is still using the US dollar and will be using it in the near future. Aside, from conspiracy theorists, Yuan is still not replacing the dollar in the near future.
Most of our export destinations are still Europe and the USA, where in the case of the USA we are having our large trade surplus for several years. So rest assured, Pakistan has to obey FATF rules for the smooth functioning of the economy.

Why do you need dollars to buy stuff when everyone is accepting Chinese Yuan?