- All concerned agencies must act in harmony
Despite frantic steps taken by the caretaker government to preempt the country’s threatened June 2018 grey listing by the global anti-money laundering and-terror-financing watch dog, Financial Action Task Force, the looming threat was not averted and Pakistan earned the dubious distinction of a repeat ‘grey list’ entry after its 2012-2015 inclusion in the unenviable club. Pakistan was saddled with a 26 point action programme of deficiencies that needed rectification and implementation within 15 months, especially as regards its international financial transactions and suspicious activities of organisations proscribed under UNSCR 1267, operating under camouflaged nomenclatures. The clear choice now is either full compliance or relegation to black list of countries FATF considers non-cooperative or globally high risk.
Though apparently absent from the incoming government’s 100-day agenda of priority tasks, this seemingly innocuous issue assumes quantum importance when viewed in the context of the country’s multi-faceted economic woes, which can hardly sustain the jolt of a black listing and possible imposition of sanctions in extreme circumstances. So the sinister implications and far-reaching consequences of the matter cannot be over-stated, but it would not appear to be so from the carefree reaction of concerned government departments, particularly at a time when a team of FATF’s regional affiliate, the Asia-Pacific Group, both of whom act in tandem in deciding the matter of legal, administrative and regulatory compliance, is arriving in Pakistan on August 13 for a preliminary assessment. Passing the buck seems to be watchword and the motto here. The National Counter Terrorism Authority in a National Executive Committee meeting on Thursday was loath to formulate and submit the all-important National Risk Assessment Report, incorporating Pakistan’s documented initial compliance efforts and demonstrating its commitment and will, by pleading institutional incapacity, and the Federal Investigation Agency too demurred similarly. But the matter can no longer be drowsily evaded or glossed over, and removal from grey list will depend hugely on close coordination between NACTA, FIA, FBR, SECP, State Bank of Pakistan’s Financial Monitoring Unit and intelligence agencies, as well as vigorous legislation. Cosmetic whitewashing will not do any more, only a model of compliance will spare moans and groans later on.