FATF asks Pakistan to document, regulate gold markets

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The Financial Action Task Force (FATF) has asked Pakistan to track, document, and regulate all gold markets in a bid to crackdown against terror financing.

The watchdog has sent a new list of recommendations to the finance ministry that requires the documentation of all Sarafa (gold) markets and the purchase and sale of gold in the country.

FATF has further asked the government to collect data on all gold markets in the country and to implement payment through credit or debit cards instead of cash based transactions.

The financial watchdog has also demanded the government to restrict the supply of gold and jewelry to terrorist organisations and banned outfits.

The FATF has also urged the Pakistani government to ensure regulation of the registered trust organisations working in the country and to collect data of all trusts, including data related to their bank accounts.

Pakistan is due to submit a third report on the measures being taken by the government in compliance with the recommendations of the FATF and its regional affiliate, the Asia-Pacific Group (APG) till April 15.

The compliance report would be taken up by the FATF review group in its meeting scheduled to be held in May.

FATF, a global body that combats terror financing and money laundering, had placed Pakistan on a money laundering “grey list” early in 2018 but given it time to take action against further downgrade.

In June 2018, Pakistan made a commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its terrorism financing-related deficiencies by implementing an action plan to accomplish these objectives.

Pakistan has also been included in the list from 2012 to 2015.

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