Pakistan’s 2nd Follow-up Report
Asia Pacific Group (APG) on Money Laundering has published results of Pakistan’s second Mutual Evaluation follow-up Report on 2 June 2021. As per the report, Pakistan has achieved compliant/largely compliant rating in 31 out of 40 FATF Recommendations in Technical Compliance. These results prove the sincerity along with resolve of the Government in complying with FATF requirements. These results are also a manifestation of the irreversibility and sustainability of the complete process in bringing Pakistan at par with Global AML/CFT standards. These results are manifestation of a whole of government approach adopted to achieve the same. An upgrade of 21 Recommendations within this short period of time remains unprecedented in FATF history. FATF’s Mutual Evaluation Report (MER) of jurisdictions is assessed in two domains i.e., Technical Compliance/Legal Instruments (40 FATF Recommendations) and Demonstration of Effectiveness (11 Immediate Outcomes). Pakistan’s MER was adopted in October 2019 in which Pakistan was rated compliant and largely complaint in 10 out of 40 FATF Recommendations for the Technical Compliance. After adoption of MER, Pakistan was placed under Post Observation Period by FATF which expired in February 2021. During the said period, Pakistan carried out major legal reforms with the enactment of 14 Federal Laws & 3 Provincial Laws along with relevant rules and regulations, most prominently the amendments in the Anti Money Laundering Act and the Anti-Terrorism Act. The laws not only strengthened the systems in Pakistan but also brought in the sustainability. Pakistan submitted its report to FATF on its Technical Compliance on 1st October 2020. APG has acknowledged that Pakistan has made notable progress in addressing the Technical Compliance deficiencies identified in its MER and has been re-rated compliant /largely compliant in 31 out of 40 FATF Recommendations.
Pakistan has also submitted re-rating requests to APG on four more recommendations in next follow-up report on 1st February 2021 which are under review by APG. The technical upgrades achieved will help manifest achievement of effectiveness in 11 immediate outcomes of the APG MER process. As a result of this substantial progress, APG has decided to move Pakistan from enhanced (expedited) to enhanced follow-up; and Pakistan will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures.