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CA Signa Signature Qualificationture Qualification PAKISTANAKISTAN P CA that Empowers to Leadthat Empowers to Lead any of today’s transnational challenges can only be solved through deep and widespread international cooperation. In some issue areas, countries choose to negotiate through formal agreements to solve problems, but when the problem is Mtransnational or worldwide, non-compliance by a handful of countries can create global vulnerabilities. The Financial Action Task Force (FATF), an inter-governmental body which sets international standards for Anti-Money Laundering and Countering the Financing of Terrorism (AML/ CFT), has taken significant action over the years, making it easier for policy makers to pursue financial inclusion goals while combating money laundering, terrorist financing, and other financial crimes. Pakistan was included in the FATF grey list during 2018, while its name was included in 2012 and then removed in 2015 after visible improvements in the country’s AML/CTF regime. There are concerns that due to Pakistan’s inclusion in FATF, the economy will slow down and may witness less trade, foreign transactions and investments by European countries in future but on the other hand, it is expected that economic surge will happen through China-Pakistan Economic Corridor (CPEC) which may offset any negative impact from the grey listing. Whether the above concerns hold true, only time shall tell. Regarding anti-terrorism efforts, Pakistan introduced first standalone Anti-Money Laundering law in September 2007 through promulgation of Anti-Money Laundering Ordinance 2007 (AMLO) followed by Anti-Money Laundering Ordinance 2009 and Anti-Money Laundering Act 2010. The AML law criminalises money laundering and provides a wide range of predicate offences. Moreover, the AML Regulations 2015, prescribe detailed procedure and forms in respect of reporting of Suspicious Transaction Reports (STR) and Currency Transaction Reports (CTR) to Financial Monitoring Unit (FMU), Pakistan’s independent and administrative financial intelligence unit, along with provisions incidental thereto. This step by Pakistan is significant in its efforts of eradicating terrorism from its soil. Fuller and stricter compliance of AML/CFT is the need of the hour for Pakistani banks and exchange companies to avoid the negative impact of being grey-listed by FATF. Any mishap in Editor's weak administration of AML/CFT regulations runs the risk of hampering smooth flow of export proceeds, home remittances and even Foreign Direct Investment (FDI). Letter The Institute of Chartered Accountants of Pakistan (ICAP) being the leading statutory body of professional accountants has been requested by FMU to create awareness and understanding of the obligations upon its members under the AML Act 2010 and FATF recommendations relating to the accountancy profession. In this context, ICAP is in process to develop and issue guidelines to members on AML/CFT and also planning to hold awareness seminars on the same through its regional committees in various cities of the country. I hope the guidelines and awareness sessions shall be useful in not only increasing the knowledge of our Chartered Accountant fraternity, but would also enable them to exercise due vigilance in day-to-day professional matters. The articles in this edition of the Pakistan Accountant are a first in a series of activities and I hope you will find these useful. We would like to hear from you about the grey-listing and its impact on our profession. For more information, members can access FMU website at: http://www.fmu.gov.pk/, FATF website at: http://www.fatf-gafi.org/, and APG website at: http://www.apgml.org/ for further clarification. In other matters for this edition, we have covered articles on economy, trade and industry, IFRS, Islamic finance and financial reporting to name a few. As always, the team at Pakistan Accountant welcomes any feedback about the magazine. Please share your feedback at publications@icap.org.pk Muhammad Awais, FCA July - S 4 4 T The Pakistan Accountant he Pakistan Accountant July - September 2018eptember 2018