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

[KhanBaba2]

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

Can you give a list of these countries and how much Pakistan exports to them.

 

[NewStudent]

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

Because, Pakistan is in a continuous deficit in earning Yuans. Pakistan is a trade deficit country with respect to China, where will it bring Yuan from?

 

[Jungibaaz]

@Jungibaaz Brother what are the consequences of ua staying in the grey list, or being moved to the black list?

We won’t be moved to the black list, no need to worry about that. I said a few months back that by next meeting or two we should be off the list. It seems that we have met 27 out of 40 conditions.

The remaining 13 are related to various financial regulations regarding money laundering (AML) and especially terrorist financing (CTF). I’m still fairly certain that we’ll be moved off of the list within a year at most. Already the government has made good progress on this front.

IMO FATF grey list was also being used as a tool to exert pressure on our government by the US. The goal was to have some more leverage on us while they needed to negotiate Afghan exit strategy. They got why they wanted it seems to me. And in the last FATF meeting our government got a lot of praise for meeting a lot of the conditions already.

As for the deadline, it’s not really a deadline. The FATF meets in Feb, June and Oct of every year I believe. In Feb, they gave us a June deadline, and now they’ve given an Oct deadline. Hopefully if we make significant progress sometime in a future meeting this year or next we’ll be moved off of the list.

As to your question of what happens now that we are remaining on the list? Economic effects? The effects are negative, FATF grey list means that international capital markets are not available for our government. It also means investment in Pakistan is trickier and not an option for some. In plain terms. It makes it harder for us to borrow money or issue debt to finance our needs, and it makes it harder to get foreign investment, it also means that bankers in London and New York might pass up business with Pakistani companies. While this is bad, IMO the effects of the current financial crisis, covid effect on Pakistani economy and even locusts is worse than FATF, much worse I’m sorry to say. On FATF itself, I don’t think we need to worry all that much, government has to deliver, I hope they do their job well.

 

[HalfMoon]

Because, Pakistan is in a continuous deficit in earning Yuans. Pakistan is a trade deficit country with respect to China, where will it bring Yuan from?

Yuan is an international currency now like US dollar. You don't need to sell to China only to get Yuans.

 

[Shahzaz ud din]

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

Response to Indian MEA Spokesperson’s Remarks and Indian Media Reports on FATF Grey Listing of Pakistan

Pakistan firmly rejects the remarks by the spokesperson of the Indian Ministry of External Affairs (MEA) and outrightly dismisses the fabricated news reports in Indian media falsely claiming another “extension” in Pakistan’s continuation on the Grey List due to “failure” to complete the Action Plan, in the recently concluded virtual FATF plenary session. We also completely reject the MEA spokesperson’s terrorism-related allegations against Pakistan.

Pakistan was prepared to present its progress report to FATF in the Plenary Meeting which was scheduled for June 2020. However, due to the ongoing COVID-19 pandemic, FATF decided on 28 April 2020 on a general pause for four months in the review process for a number of countries under ICRG (International Cooperation Review Group) assessment including Pakistan.

The agenda of FATF’s virtual plenary meeting, held on 24 June 2020, did not include Pakistan. In this virtual plenary meeting, no new decision regarding Pakistan was made. The decisions taken by FATF in February 2020 plenary meeting regarding a number of countries including Pakistan remain in effect. The evaluation of Pakistan’s FATF Action Plan would be made in the next Plenary cycle of FATF, in which Pakistan would present its progress report.

In this backdrop, reports in the Indian media insinuating that FATF has extended Pakistan on the Grey List are patently misleading and part of the incessant smear campaign by India against Pakistan. Pakistan has repeatedly drawn the attention of the international community towards India’s sinister attempts to use FATF process for its narrow political gains. Pakistan has also been raising the issue of India’s dubious credentials as an impartial and objective assessor of Pakistan’s progress on the FATF Action Plan. India’s efforts to misuse the technical forum of FATF for discrediting Pakistan have been noticed by FATF members and are not appreciated by the international community.

Pakistan remains committed to completing its FATF Action Plan and continues to make progress. We hope that the FATF membership would take cognizance of India’s malicious campaign against Pakistan and reject any attempt at politicizing the FATF proceedings.

 

[truthfollower]

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.

Jews and Christian Infidels are more just and care for our country and people of Pakistan compared to Muslims in charge of our country so Nice of them !

 

[truthfollower]

Jews and Christians aren't infidels.. lol. Maybe you should pick up the Quran every once in a while and you wouldn't say things like that.

jews, christians and infidels*

 

[M.Bison]

jews, christians and infidels*

lol, alright. I guess there is a typo in your post. Anyways, I think the people giving out the loans are as religious as the ones taking the loans. FATF is a sham organization and its a way to blackmail poorer nations just like atheism and other new world movements.

Their justice is limited to their own populace but they export war, famine, and corruption into other nations. Just look at Iraq, Afghanistan, Libya, Ukraine, Syria, Lebanon, and Palestine. So I don't think they are just with Pakistan, It is clearly a ploy to make Pakistan submit and keep it subservient.

Terrorism is not produced by the layperson in Pakistan. They are victims of terrorism but yet FATF's policies only hurt the layperson. So it is all ruse.

 

[SQ8]

Jews and Christian Infidels are more just and care for our country and people of Pakistan compared to Muslims in charge of our country so Nice of them !

Jews and Christians are referred to as people of the book so I do not know what infidels you refer to.

However, no enemy of Pakistan can do anything when we ourselves are corrupt to the core and willing to support corrupt parties and people just because they are from the same ethnicity or family heritage of support.

No jew or Christian was involved in PPP,PML(N),MQM,PTI, Bureaucrats or retd military embezzlement

 

[A.A. Khan]

I'm sick and fed up with this G7 shithole FATF.
Pakistan needs to increase its ties with China and protect its core issues like KAshmir. FATF is responsible for the massacre going on in Kashmir by tying Pakistan's hands while allowing open business for Hindu terrorists in GCC nations. PAkistan needs to safeguard itself and f*** FATF. We are'nt inviting any amazing investment anyway we have been isolated and treated as outcast from the West since 2001. This stupid hope that Pakistan needs to comply so that it can attract FDI into NGOs and liberal dalaals should be thrown into dustbin.

 

[Bouncer]

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.

If that list of conditions is accurate I think we should comply with all of it, apart from the bits about convicting people and converting madrasas.

It's upto our legal system to decide if anyone is a criminal or not. We should not take foreign dictation on the matter. Same with madrasas. We decide what role they play - not the gora.

The rest is sound financial measures.

Exactly. And the hurdle in implementation of stricter AML is not a lack of capacity. Its the thugs sitting in parliaments and their buddies. If AML related points are implemented in letter and spirit it will be actually great for average Pakistanis when their politicians/generals/civil servants/tax evaders will not be able to invest in Dubai/London properties.

Remember when PTI tried to limit role of exchange companies and allow banks to enter retail forex? How quickly it was shut down. I really hope Allah SWT guides us and our leaders towards the right path.

 

[313ghazi]

Exactly. And the hurdle in implementation of stricter AML is not a lack of capacity. Its the thugs sitting in parliaments and their buddies. If AML related points are implemented in letter and spirit it will be actually great for average Pakistanis when their politicians/generals/civil servants/tax evaders will not be able to invest in Dubai/London properties.

Remember when PTI tried to limit role of exchange companies and allow banks to enter retail forex? How quickly it was shut down. I really hope Allah SWT guides us and our leaders towards the right path.

For this reason I think we'd benefit from being on fatf greylist for a while.

 

[HammerHead081]

Biggest Economic power of the world is China and they are investing in Pakistan. Pakistan does not need investments from anyone else. All these countries can take a hike.

Who wouldn't want Starbucks, In n' out, Wendys, Taco Bell, Popeyes and Five Guys in Pakistan