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Tag: Financial Action Task Force

  • Pakistan prone to exit FATF’s terror funding ‘grey list’ | Exclusive

    Pakistan is likely to exit the Financial Action Task Force (FATF) ‘grey list’ after clearing all 34 motion factors, however might be moved to common comply with up, say sources.

    New Delhi,UPDATED: Oct 15, 2022 07:07 IST

    Highly positioned sources have informed India Today that Pakistan is compliant on all 34 factors within the FATF motion plan set out by the worldwide monetary watchdog.

    By Geeta Mohan: Pakistan is prone to be off the ‘grey list’ of the Financial Action Task Force (FATF), when it meets in Paris from October 18 to 21. Highly positioned sources have informed India Today that it’s compliant on all 34 factors within the FATF motion plan set out by the worldwide monetary watchdog, of which 27-point motion plan was associated to terror financing and 7-point motion plan was to do with cash laundering.

    A 15-member group of the FATF concluded a five-day onsite go to to Pakistan from August 29 to September 2, and met officers involved in regards to the monetary system of Pakistan, together with the FIA, FBR, the state financial institution, finance ministry, overseas workplace and different involved establishments, and ready an onsite report on Pakistan.

    The findings of the group, which included representatives from the UK, the US, Germany, France, Australia, EU, Asia Pacific Group (APG) and others, will probably be submitted and mentioned through the plenary session.

    The Pakistan delegation will probably be headed by Minister of State for Foreign Affairs, Hina Rabbani Khar.

    Officials aware of the proceedings are pretty positive that they are going to be off the checklist. However, there’s a small chance of delay to February if sure nations make a powerful case about considerations relating to money couriers (hawala), cash laundering, which continues within the nation.

    However, ought to Pakistan get off the ‘grey list’ it should nonetheless not be a clean trip for Islamabad since sources say they might be moved to ‘Regular Follow-Up’ (RFU) which might require Pakistan to present common updates to the FATF even when they aren’t on the ‘Enhanced Monitoring List’ or the ‘grey list’.

    According to the FATF web site, a follow-up course of is in place “to focus on countries which do not make sufficient progress in addressing their risks and deficiencies, and to exert pressure on such countries to improve their performance.”

    FOLLOW-UP PROCESS

    The FATF and FSRBs’ follow-up procedures ought to embody two forms of course of:

    Regular follow-up because the default monitoring mechanism, based mostly on a system of normal reporting.

    Enhanced follow-up, involving a extra intensive means of follow-up, for nations with vital deficiencies, or nations making inadequate progress. In deciding whether or not to put a rustic in enhanced follow-up, the Plenary ought to contemplate each the extent of technical compliance and of effectiveness reached by a rustic.

    (Source: FATF web site)

    Pakistan was on the FATF ‘black list’ from 2009-2012 after which was moved to the ‘grey list’ from 2012-2015. In 2015, after they had been getting off the ‘grey list’, they had been placed on ‘Regular follow-up’ from 2015-2018.

    Similarly, they’ve been on the gray checklist’ from 2018-2022 and if the choice to take them off the checklist is made, they might be moved to RFU but once more, says supply.

    PAK FATF BACKGROUND:

    2009-2012 – Black List

    2012-2015 – Grey List

    2015-2018 – RFU

    2018-2022 – Grey List

    2022- RFU

    With hardly any motion on Pak-based terror networks and terrorists that focus on India, New Delhi will make all efforts to make sure Pakistan’s monitoring continues. A senior intel officer has mentioned, “We are already noting Pak action wrt training camps and increase in number of terrorists across the LOC.”

    “We are collecting evidence to be presented to FATF in 2024 to show how they continue to abet terrorism and that the State is a terrorist inspirer,” mentioned the officer.

  • Want to ship cash overseas? Know the advantages of LRS

    If you have got a toddler learning overseas or if you’re planning an abroad vacation, then the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) applies to you.

    Under LRS, all resident people, together with minors, can remit as much as $2,50,000 per monetary yr for any permissible transaction. There are not any restrictions on the frequency of remittances, and in addition no transaction-specific sub-limits below LRS.

    Among the permitted transactions for which international change could be remitted, are non-public journey (besides to Nepal and Bhutan), journey for enterprise or medical remedy, items or donations, upkeep of shut relations overseas, research, and abroad investments. On the opposite hand, prohibited transactions embrace remitting cash for buy of lottery tickets, for margin calls to abroad exchanges / counterparties, and for buy of belongings in international locations recognized as non-cooperative by the Financial Action Task Force.

    “Certain transactions are prohibited below regulation, and the identical restrictions have been integrated even below the LRS,” says Neeraj Agarwala, partner, Nangia Andersen India.

    To be able to remit money, the individual must have a valid PAN and should be able to provide adequate documents to prove the genuineness of the transaction, says Agarwala.

    As for investments made abroad, he says, “Investing in the shares of a private company is permitted under the LRS. But one needs to ensure that they comply with the ODI (overseas direct investment) guidelines. So, the monetary limit comes from the LRS, and the compliances and other regulations come in from the ODI scheme.”

    While the LRS restrict applies at a person degree, relations can membership collectively their permissible limits. Agarwala says RBI has now particularly permitted pooling of funds for the acquisition of immovable property exterior India. “So, if I buy a property for $4,00,000, then I can remit $2,50,000 and the stability could be remitted by my spouse. After the latest modification, she needn’t be a co-owner within the property.”

    RBI information on LRS exhibits ‘maintenance of relatives’ and ‘gifts’ among the many prime spend classes after journey and research overseas.

    According to Agarwala, for the aim of LRS, the identical definition of relative as below the Companies Act, 2013, is relevant. This contains father, mom, partner, siblings, and many others. “In absence of any particular directions on what is roofed below ‘maintenance’, this could usually imply the price of lodging, journey, medical and training bills of shut relations.”

    Again, ‘gift’ has not been defined. “So, any money transferred out of love and affection, and not as consideration for any services received would qualify as a gift,” provides Agarwala.

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  • FATF retains Pakistan on its ‘gray’ checklist; to conduct on-site go to

    Global monetary watchdog the Financial Action Task Force (FATF) on Friday retained Pakistan on its ‘gray checklist’.

    FATF retains Pakistan from its ‘gray checklist’. (Photo: Twitter/FATF)

    Global monetary watchdog the Financial Action Task Force (FATF) on Friday stated that it’ll conduct an on-site go to in Pakistan on the earliest potential date, indicating that the nation is more likely to be faraway from its gray checklist.

    This choice was introduced after a three-day of the FATF plenary in Berlin, Germany.

    The on-site go to is introduced when the choice to take away is arrived, after which formally eliminated within the subsequent plenary.

    Meanwhile, the official announcement shall be made on the October plenary of the FATF.

    “At its June 2022 Plenary, the FATF made the initial determination that Pakistan has substantially completed its two action plans, covering 34 items, and warrants an on-site visit to verify that the implementation of Pakistan’s AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation and improvement in the future,” the FATF stated in an announcement.

    “The FATF will continue to monitor the COVID-19 situation and conduct an on-site visit at the earliest possible date,” the assertion added.

    GREY LIST

    Pakistan has discovered it troublesome to maneuver out of the gray checklist since June 2018. The FATF has discovered it floundering on containing cash laundering that streams funds to terror outfits in Pakistan and Afghanistan.

    Since 2018, the nation continues to be on that checklist resulting from its failure to adjust to the FATF mandates.

    FATF

    The FATF was based in 1989 on the suggestion of G-7 (the group of the seven most industrialised nations) to maintain a tab on cash laundering and take measures to include the follow that usually finally ends up fomenting bother in a single half or the opposite on the earth. Turkey turned a member of the FATF in 1991.

  • Pakistan to stay on ‘Grey List’ of world terror financing watchdog FATF

    Pakistan will proceed to be on the ‘Grey List’ of the FATF because it must “further demonstrate” that motion is being taken towards UN-designated terrorists like India’s most wished Hafiz Saeed and Masood Azhar, and teams led by them, the worldwide physique towards terror financing stated on Thursday.
    Addressing a press convention, Financial Action Task Force (FATF) president Marcus Pleyer stated the choice has been taken on the conclusion of the digital plenary of the organisation.
    On the motion plan of Pakistan, Paris-based FATF requires it to reveal terror financing investigation and prosecution of leaders and commanders of UN-designated terrorist teams and their associates, Pleyer stated.

    Pakistan continues to stay on “increased monitoring list”, he stated at a digital press convention from Paris.
    “Increased monitoring list” is one other identify for the ‘Grey List’.

    “Pakistan has taken a number of important steps but needs to “further demonstrate that investigations and prosecutions are being pursued against the senior leadership of UN-designated terror groups,” the president of the worldwide physique towards cash laundering and terror financing stated.
    “All these changes are about helping authorities prevent terrorism, stop corruption and prevent organised criminals from profiting from their crimes,” he stated.