Pakistan exposed: US calls out terror crackdown bluff, tells Pak to expand FATF safeguards to 'informal sectors'

US has urged Pakistan to expand Financial Action Task Force (FATF) safeguards to informal sectors of ecomy amid its concerns over slow progress on implementation of 27-point action plan, media reported on Friday.

A US delegation which has been assessing on-ground implementation of 27-point action plan of FATF took up matter on Wednesday with federal minister Hammad Azhar, who is also coordinator on FATF affairs from civilian side, Express Tribune reported.

delegation is visiting country to have an independent assessment of steps, actions and measures identified during Florida meetings of Paris-based anti-money laundering watchdog in June this year and progress made by Pakistan since n.

In June, FATF said that Pakistan failed to complete its action plan on terror financing. It warned Islamabad to meet its commitment by October or face action, which could possibly lead to country getting blacklisted.

Sources told newspaper that during meeting with government officials, US delegation ackwledged work done by Pakistan during past 15 months but expressed concerns over slow progress that would result in missing of many of agreed action points.

delegation urged Pakistani authorities to put more concerted efforts to address deficiencies in Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) regimes, which led to grey listing of Pakistan with effect from June last year.

US delegation got first-hand information about country's preparedness to deliver on action plan during its interaction with private and public sectors, which began on August 5 in Karachi.

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Federal Minister Azhar has recently been appointed as coordinator of a Cabinet body that is overseeing implementation on FATF Action Plan.

This is in addition to National Executive Committee on anti-money laundering that is headed by Advisor to Prime Minister on Finance Abdul Hafeez Shaikh.

Official sources said that US delegation discussed loopholes in financial system and its lack of cover of various sectors of ecomy.

y said that US authorities were of view that about one-fourth transactions were still taking place outside formal banking sector.

y advised Pakistan authorities to take measures that could fully capture business transactions in real estate and agriculture sectors, sources said.

y urged US authorities to review country's progress instead of judging it on 27 goals, sources said.

US delegation came to Pakistan nearly two weeks before government is set to submit a report on August 13 on steps and actions taken by country on 27-point Action plan before Joint Group of Asia Pacific Group (AGP) for a joint review.

joint group would discuss findings of report in a September 9-13 meeting in Bangkok.

Pakistan is a member of APG and its case is being presented before FATF by APG.

India's Financial Intelligence Unit's (FIU) director general and US Assistant Treasury Secretary Marshall Billingslea co-chair Joint Group.

We have made a lot of progress since June last year but yes we have t still reached to an ideal situation, a senior government official said on condition of anymity.

official said that Pakistan still needed more time to fully implement 27-point Action Plan and that government would work with international partners to seek more time from FATF. 

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