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FATF hands 10-point plan to Pak.
Why it is in news?
- Unanimously agreeing to put into effect its February decision to place Pakistan in the grey list for inaction against terror funding, the Financial Action Task Force (FATF) has laid out a 10-point action plan for compliance with its guidelines.
Background
- Pakistan’s failure in implementing the elaborate action plan may result in it being included in the black list the next year.
- After 2012-15, this is the second time it has been grey-listed and is facing sanctions.
- The country has been instructed to take measures demonstrating that UN-designated terrorists and banned terror outfits such as Hafiz Saeed and Masood Azhar, Taliban and Haqqani Network, Jaish-e-Mohammad, Lashkar-e-Taiba, and their affiliates, are deprived of their resources and their sources of funding are choked.
- The FATF, in its Paris Plenary, observed that Pakistan had this time round made a high-level political commitment to work with the global watchdog and the Asia Pacific Group, of which it is a member, to strengthen its anti-money laundering and counter terror-financing regime.
Pakistan
- Pakistan will have to take steps to ensure that terror funding risks are properly identified, assessed and that supervision is applied on a risk-sensitive basis.
- It will also be required to show that remedial measures are being taken to prevent financial institutions from indulging in money laundering and terror funding.
- The country will have to take stringent action against illegal financial operations, identify cash couriers and enforce controls on illicit movement of currency.
- It has been told to improve coordination between the provincial and federal authorities on combating terror funding and enforce effective prosecution and conviction of the designated persons, entities and their affiliates.
- The FATF has also sought actions demonstrating effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) against all designated terrorists and those acting for or on their behalf.
Source
The Hindu