Financial Crime World

Here is the article rewritten in Markdown format:

Pakistan’s Progress: AML/CFT Reforms Pay Off as Country Removed from FATF Grey List

Lahore, Pakistan - In a significant milestone, Pakistan has been removed from the Financial Action Task Force (FATF) grey list after completing its action plan to combat money laundering and terrorist financing. This achievement is attributed to the concerted efforts of various stakeholders, including the Institute of Chartered Accountants of Pakistan (ICAP), which played a key role in implementing AML/CFT reforms.

A New Era of Cooperation

The FATF’s removal of Pakistan from its grey list is a testament to the country’s commitment to tackling money laundering and terrorist financing. The process began with the introduction of new laws and regulations, including amendments to:

  • Anti-Money Laundering Act (2010)
  • Anti-Terrorism Act
  • Foreign Exchange Regulations Act
  • UNSC 1948 Act
  • Limited Liabilities Act
  • Mutual Legal Assistance Act
  • Rules for CDNS Supervisory Board
  • AML/CFT Sanctions Rules, 2020
  • Regulations for accountants, jewelers, and real estate professionals

ICAP Takes the Lead

As one of the designated AML/CFT regulators in Pakistan, ICAP played a vital role in establishing an AML/CFT compliance framework that met FATF’s requirements. The institute:

  • Developed a risk-based supervision framework
  • Launched an off-site monitoring program
  • Implemented an automated risk matrix program to assess ML/TF risks

Structural Changes

To govern its new regulatory responsibilities, ICAP established a new AML Supervision Department, overseen by an independent Board (AML Supervisory Board). The board consists of representatives from:

  • ICAP
  • Securities and Exchange Commission of Pakistan (SECP)
  • Financial Monitoring Unit (FMU)
  • ICAP Council

Member Education

ICAP also launched a comprehensive program to educate its members on AML/CFT compliance. Over 1000 members attended awareness sessions, featuring expert speakers from various AML/CFT regulators and law enforcement agencies. The institute has also developed guidelines on AML/CFT compliance for its members and operates a dedicated email address and phone line to address queries.

Global Engagement

ICAP is leveraging its experience to support other professional accountancy organizations worldwide in engaging with AML/CFT reform. Regionally, the institute plays a key role in the South Asian Federation of Accountants (SAFA) and has provided valuable support to PAOs in the region regarding FATF recommendations. Globally, ICAP has engaged in direct discussions with leaders of African PAOs in jurisdictions on the FATF grey list.

A Model for Success

Pakistan’s success story serves as a model for other countries facing similar challenges. The country’s progress demonstrates that concerted efforts by various stakeholders can lead to significant improvements in AML/CFT compliance and ultimately, removal from the FATF grey list.

Conclusion

The removal of Pakistan from the FATF grey list is a testament to the country’s commitment to combating money laundering and terrorist financing. ICAP’s role in implementing AML/CFT reforms has been instrumental in this achievement, and its experience can serve as a valuable resource for other professional accountancy organizations worldwide.