LAHORE: The Federal Investigation Agency (FIA) has established Financial Action Task Force (FATF) desks across all its wings and zones by expanding the existing FATF secretariat at the Anti-Money Laundering Directorate, as part of the country’s upcoming evaluation by the global anti-money laundering watchdog next year.
The move is intended to improve the effective implementation of international standards with regard to investigations into money laundering, terrorism financing and predicate offences.
“This significant step will also improve the quality of investigations and prosecutions, data maintenance, timely generation of international cooperation requests, prompt inter-agency coordination and effective feedback mechanisms,” a senior FIA official told Dawn on Tuesday.
According to the official, FIA Director General Dr Usman Anwar has instructed all zones and specialised wings to set up FATF desks within seven days, to ensure full compliance with international standards and avoid any deficiencies during the country’s assessment, expected in the last quarter of 2027.
The FIA chief has also directed that each desk be headed by an officer of at least Assistant Director rank.
Pakistan was put on the enhanced monitoring list (grey list) in August 2018 by FATF. After demonstrating significant improvement against a 27-point action plan regarding technical compliance and effectiveness, it was removed from the grey list in October 2022.
The country’s exit from the grey list helped improve its standing with international financial watchdogs and investor confidence. It also supported broader economic engagements, including negotiations with the International Monetary Fund (IMF).
“Domestically, it also improved the effectiveness of regulations, law enforcement and capacity of regulators and law enforcement agencies (LEAs) in CFT and money laundering,” the official said.
The official said in 2021 , the FATF secretariat was established at the Anti-Money Laundering Directorate of FIA headquarters to implement FATF standards effectively and to remove major shortcomings highlighted in the 27-point action plan.
“With the passage of time and owing to an increase in volume and emerging trends in investigations of predicate offences, anti-money laundering and countering financing of terrorism (CFT), it was inevitable to expand the existing framework,” he said.
The newly established desks include seven units — the Financial Intelligence Unit (FIU), the Investigation Monitoring Unit (IMU), the International Cooperation Unit (ICU), the Inter-Agency Coordination Unit (IACU), the Risk Assessment Unit (RAU), the Seizure and Confiscation Unit (SCU) and the Forensics and Virtual Assets Unit (FVAU).
Each zonal desk will be reporting to a desk at the concerned wing of the FIA headquarters.
The FIU plays a particularly important role as it receives financial intelligence from the FMU, disseminates it to concerned zones for investigation, and provides feedback to the FMU.
The ICU facilitates the sending and receiving of international cooperation requests through formal and informal channels for assistance from foreign jurisdictions in cases involving money laundering, terrorism financing and predicate offences. Assistance includes the collection of evidence, seizure and confiscation of foreign proceeds, and the arrest of absconding accused persons.
The IMU monitors the effectiveness and quality of ongoing investigations by providing guidance to investigators and prosecutors, while the IACU ensures prompt assistance to investigators by providing information and evidence from other LEAs, regulators and authorities such as NADRA, the Directorate General of Immigration and Passports, excise departments, the Pakistan Telecommunication Authority (PTA) and the Federal Board of Revenue (FBR) (Income Tax).
The RAU is mandated to conduct periodic risk assessments of various sectors, geographical regions and offences under its domain. This exercise will ultimately feed into Pakistan’s National Risk Assessment, according to the official.
The SCU will ensure seizure and confiscation during money laundering and terrorism financing investigations, while also maintaining a database of seizures and confiscations carried out by the FIA.
Meanwhile, the FVAU has been established as a proactive approach to meet the needs of investigations, including digital equipment, the use of cyberspace in the commission of conventional crimes, and virtual assets as a channel for the movement of illegal proceeds and as a placement, layering and integration platform.
“Each zone will also maintain an official digital wallet for the safe custody of seizure and confiscation of virtual assets,” the official said.
He added that since Pakistan’s removal from the grey list, key institutions — including designated LEAs, the FIA, the National Accountability Bureau (NAB), the Anti-Narcotics Force (ANF), Counter Terrorism Departments (CTDs), the National Cyber Crimes Investigation Agency (NCCIA), FBR Customs and FBR Inland Revenue, regulators of the financial sector, and Designated Non-Financial Businesses and Professions (DNFBPs) — had continued efforts to ensure compliance with FATF standards on an ongoing basis.
He further said the authorities had sustained measures against cross-border cash smuggling, improved Know Your Customer (KYC) and Customer Due Diligence (CDD) processes for financial transactions, and tightened oversight of DNFBPs such as real estate agents, dealers in precious metals and stones, accountants and lawyers.
During the period of grey-listing, Pakistan also showed significant progress in the counter-terror financing regime by taking action against proscribed individuals and organisations and their associated networks, seizing properties, freezing bank accounts, and prosecuting individuals involved in terror-financing activities.
“The National Counter-Terrorism Authority (Nacta), CTDs, the FIA, provincial home departments, district intelligence committees, police, intelligence agencies and other authorities played a pivotal role through synergised efforts in removing major shortcomings and developing a sustainable and effective countering and monitoring regime for the financing of terrorism,” another official said.
He added that the expansion of FATF desks and specialised units reflected FIA’s continued efforts to maintain compliance ahead of the next mutual evaluation and avoid any risk of renewed scrutiny by the global watchdog.
