The Financial Action Task Force (FATF) is the intergovernmental organization set up in 1989 to tackle the legitimacy of the international financial sector, the war against money laundering, terrorist funding, and other associated challenges.
The FATF also has 39 affiliates, plus the European Commission and Gulf Cooperation Council, two international organizations.
What Is FATF And Its Implications On Pakistan’s Economy
In June 2018, Pakistan was placed on the grey list by the Paris-based global money laundering and terrorist financing watchdog and asked Islamabad to introduce an action plan for curbs money laundering and terrorist funding by the end of 2019.
In August, debt-drenched Pakistan sought to bring 88 outlawed militant organizations and their leaders out of the FATF’s grey list and enforced financial restrictions, which included 26/11 a Mumbai attack by the head of Jamaat-ud-Dawa (JeD), Hafiz Saeed chairman, and Jaish-e-Mohamed (JeM) Masood Chief Azhar chief and Dawood Ibrahim chief underworld.
On the basis of a check on Islamabad’s success in accordance with global obligations and norms in terms of money laundering and terror funding (ML&TF) the virtual plenary planned for October 21-23 will determine whether or not Pakistan is removed from its grey list.
In September the parliament’s joint session amended approximately 15 laws to refine its legal framework, as mandated by the FATF. The government has already submitted its report and replied to its commentaries, describing compliance with the 13 remaining acts to the FATF and its related oversight groups.
Chances Of Pakistan In Getting In The Blacklist Or Not?
This month’s FATF meeting would discuss compliance with Pakistan’s 13 remaining action items. In the case of terrorist finance breaches in relation to risk control and terrorist financing sanctions commitments, the FATF will determine if the government has demonstrated corrective measures and sanctions.
The outstanding areas of intervention of the government include the successful implementation of targeted financial sanctions, (including avoidance of acquisition and transfer of financing, detection and freezing of properties (movable and immobile) against all 1,267 and 1,373 identified terrorists or working on their behalf.
If the FATF concludes at its meeting that Pakistan has not met its demands, the global body is likely to make the country part of the ‘blacklist’ alongside North Korea and Iran.
The combined failures to close the gap between demand and supply for energy have caused circle debt to be caused by our regulatory, social, political, and economic policies. Inefficiencies in the electricity market, such as transmission and delivery losses, the wrong electricity blend, an unsustainable tariff system, inadequate legislative structure (with government IPPs fleeing through inflation bills), prolific IPP benefits, and federal-provincial gaps were all the added benefit. This gross inefficiency and incapacity by national stakeholders, particularly economic managers, is now affecting the entire domestic supply chain.
FATF And The Role Of Property Business In Pakistan
In addition, the Government plans to convince provinces to revise appraisal prices closer to market value to resolve the problems of terrorism funding parked in the property. The FBR official said: “We called upon the Provinces to revise DC rates closer to their market value,” adding that tax rates would be lower so that their tax effect could be neutralized.
He said that in the next budget the revised DC rates will be released through province financing bills.
The official said, adding that members of these sectors were invited to co-operate in enforcing global standards, “We do not want to affect property business.”
The official said, however, that the government will have to amend the anti-money laundering act in order to have effective power. “I do not know when it is going to happen,” he said.
Since the state is eager to take policy in the real estate sector to eliminate black capital. Media sources are aware that Pakistan will set up a “Real Estate Regulatory Body” to curb black cash in the market. The government shall make sure, in the name of every criminal group or illegal machinery, that lands and assets are not moved.
Formation Of Real Estate Regulatory Authority
In addition, the formation of the Real Estate Regulatory Authority will be supported by federal institutions.
The new regulatory authority would make it obligatory for real estate entrepreneurs to sign up for the authority and obey important documents of the enterprises.
In the background of the SEC, a preliminary draught of creating the authority in compliance with FATF requirements has already been drafted by the Security and Exchange Commission of Pakistan (SECP).
In the meantime, the SEPT Scientific and Legal Section work out additional work together.
However, problems relating to land taxes are omitted from the authority’s scope.
A draught may be submitted for approval by the next meeting of the Federal Cabinet for the creation of the Real Estate Regulatory Authority, according to Sources.
The industry analysts and Pakistani realtors are positive about the prospects of the real estate market because the Pakistani Government is now attentive to the problems of the property sector as soon as possible.
The government’s steps to end terror and its attempts to eliminate crime in the world are likely to soon strengthen the country’s prevailing laws and order. It will raise trust among aspirants and property buyers and allow them to invest in real estate.
Summing It Up: Latest Property Alerts & FATF News
The fastest-growing economic field in Pakistan is now the property business. For overseas and local investors looking for a place to place their investments, this is the real investment choice. Although 2019 financial crises have badly affected the property world over, as well as Pakistan, 2020 is the best investment opportunity, as there are various improvements in this sector that hold buyers and sellers alike. Construction and apartment prices are competitive and the time for expansion in this industry is right.
To sum up, the PTI Government needs to realize that it can save the sliding fortunes only by means of economic reparations, sensible team changes, enhanced revenues from duty-free, productive tax collections for purchases, a fixed-tax structure for the informal economy, a cost drop, steady utility prices, export facilitation, a healthy exchange cost, and FATF enforcement.
Whilst we are commissioning the public debt report and setting up task forces on all the issues under the sun, it might also be time to take this very critical issue seriously.
This is perhaps a test case which should be taken up by the recently constituted National Development Council, including the Armed Forces leader and the Regional Prime Ministers. Or, otherwise, every couple of months the blacklist threat will begin to torment us, shoo way investors and sustain confusion.
Let’s hope for the best!
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