Roundup: Passage of FATF-related legislation to fortify Pakistan's economy

0 Comment(s)Print E-mail Xinhua, September 17, 2020
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by Raheela Nazir

ISLAMABAD, Sept. 17 (Xinhua) -- After the passage of three Financial Action Task Force (FATF) related bills on Wednesday by a joint session of Pakistan's parliament, the country has wrapped up the important task of legislation concerning FATF, which experts believe will not only prevent the country from being blacklisted by FATF, but also have salutary effects on the national economy and revamp the global image of Pakistan.

FATF put Pakistan on its grey list in June 2018 and gave Islamabad a final deadline in February 2020 to implement the remaining 13 out of 27 action points by June 2020, but the deadline was extended up to September due to the COVID-19 pandemic.

In this regard, over the past few months, dozens of laws have been passed by the national assembly and the senate to prevent Pakistan from being blacklisted by FATF and pave the way for the country to get out of the grey list.

The final three FATF-related bills passed Wednesday were Anti-Money Laundering (Second Amendment) Bill-2020, Anti-Terrorism (Third Amendment) Bill-2020, and Islamabad Capital Territory Waqf Properties Bill-2020, according to government officials.

Speaking with Xinhua, Ahsan Hamid Durrani, a public policy analyst and senior programs manager at Icarus Incorporated, an Islamabad-based research, strategic planning and advocacy organization, said the enactment of bills over the last few months is a watershed moment in Pakistan's efforts against terror financing and money laundering as these amendments seek to update investigation techniques, and are critical in enhancing Pakistan's anti-money laundering frameworks to further strengthen compliance to the FATF recommendations.

"I think the passage of these important bills should serve as a testament to Pakistan's resolve in its fight against terror financing and money laundering. Pakistan wants to maintain its status as a responsible state in the world, therefore this legislation was required," the analyst said.

These policy reforms resulting in Pakistan's removal from the grey list will ultimately help the country in putting its economy on the right track, Durrani said.

"In today's globalized world, like all other countries, Pakistan's economy is not insulated and dependent on international investors. Foreign direct investments (FDI) are vital for Pakistan's economic revival, and I believe Pakistan's exit from the grey list of FATF will boost the FDI given right economic policies are enforced," he said.

Durrani thinks that if Pakistan managed to get out of the grey list, it will be much easier for it to acquire financial aid or loan from global lenders like the International Monetary Fund, Asian Development Bank and European Union, improving its faltering economy.

Terming the passage of the bills historic for the larger interest of the country, member of Pakistan's National Assembly Saleem Rehman said that the legislation will assist in the government's efforts to make the economy documented, as people have come under more financial scrutiny and the requirements for documents pertaining to money transactions have been greatly increased.

Under the anti-money laundering bill, all banks and financial institutions across the country are now required to conduct a thorough investigation of each account holder. Any person sends or receives a large amount of money, will be asked by the concerned institutions about the source of income, and authorities will keep a close eye on more than expected transactions, the lawmaker told Xinhua.

Rehman said a powerful national executive committee is being set up under the supervision of the Pakistani finance minister, which will ensure effective implementation of these laws and set rules and regulations in this regard.

"The new rules are promising for Pakistan's economy, as they will allow the government to keep a record of illegal money. Similarly, the number of taxpayers will increase and tax evasion will be discouraged," he said.

Under the enacted laws, the conditions to receive money from abroad is not that complex when compared to sending it out of the country. "Overseas Pakistanis can send remittances back without much hustle, which is largely contributing in maintaining the foreign currency reserves of the country," Rehman said.

Under the Islamabad Capital Territory Waqf Properties Bill-2020, the federal government also intends to control terrorism and religious extremism in the country.

"The bill would greatly contribute to root out the menace of terrorism as the administrators of mosques and seminaries in the federal capital Islamabad could be charged if found involved in terror financing, religion-based hate speech or any act that undermines national sovereignty and unity," Executive Director of Center for Research and Security Studies Imtiaz Gul told Xinhua.

It will consolidate the gains of the country's crucial war on terror to achieve enduring peace and stability both for Pakistan and the world, he said. Enditem

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