While the FATF welcomed Pakistan’s close co-operation with the Asia/Pacific Group on Money Laundering (APG), it remained concerned regarding the money laundering and financing of terrorism (ML/FT) risks posed by the south Asian nation and reaffirmed its public statement of February 28, 2008, regarding these risks. The FATF expressed concern that Pakistan’s Anti-Money Laundering Ordinance (AMLO) will expire on November 28, 2009. The FATF noted that Pakistan has initiated a legislative process to address this. The FATF strongly urged Pakistan to implement a permanent AML/CFT framework before the expiration of the AMLO and establish a comprehensive AML/CFT framework. “Failing concrete progress, the FATF will consider taking action in February 2010 to protect the financial system from the ML/FT risks emanating from Pakistan,” it said.
The FATF is also concerned over Iran’s lack of engagement with the FATF and its failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism regime. The FATF was particularly concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urged Iran to immediately address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements.
The FATF urged all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF urged all jurisdictions to apply effective counter-measures to protect their financial sectors from ML/FT risks emanating from Iran.