New Delhi, Jul 22: The multi-national Financial Action Task Force (FATF) which tracks money laundering and terrorist financing across the national borders suggested India's neighbours to improve the legal measures to stop the criminalization of its financial channels.
FATF is an inter-governmental financial organisation founded in 1989 by the G7 (Group of Seven Industrialised Nations) in order to develop policies to battle against money laundering and terrorist financing.
A senior Revenue department official said that the instruction provided by the world body to India's neighbouring countries including Pakistan is important, as it will ensure a better and criminal free financial hub and network around the burgeoning economic power like India.
"In June 2010, Pakistan made a high-level political commitment to work with the FATF and Asia Pacific Group (APG) to address its strategic Anti-Money Laundering (AML) and Combating Financing of Terror (CFT) deficiencies. Pakistan has demonstrated progress in improving its AML and CFT regime, including enacting a permanent AML law. However, the FATF has determined that certain strategic AML and CFT deficiencies remain," said FATF in its suggestion to Pakistan.
Pakistan should work to patch up these deficiencies which include demonstrating criminalisation of money laundering and terrorist financing; identify, freeze and confiscate terrorist assets; ensuring a fully operational and effectively functioning Financial Intelligence Unit.
FATF also asked Pakistan to demonstrate effective regulation of money service providers, including implementing effective controls for cross-border cash transactions.
The other prominent countries who have been instructed by FATF to work on their action plans include Indonesia, Thailand, Kenya, Morocco, Syria, Ecador, Greece, Ethiopia, Bolivia and Turkey.