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Signature Qualification CA that Empowers to Lead PAKISTAN T he Financial Action Task Force (FATF) placed Pakistan on the ‘Improving Global Anti- Money Laundering/Countering Financing of Terrorism (AML/CFT) compliance list’ known as the ‘grey’ list in June 2018. Pakistan Government reaffirmed its commitment to comply with the FATF set of requirements. Pakistan’s placement on the grey list has many implications particularly from the international perspective. The foremost being a negative perception of the robustness of the local regulatory regime and the implementation and monitoring of the laws. Being on the international watch list may hamper in negotiations for foreign financing and in doing other related banking transactions. Pakistan needs to demonstrate that it has a system that can control terrorist financing and unchecked flight of capital. The dilemma is the effective monitoring and implementation of the laws especially when a large segment of our economy is undocumented. Sadly, it is the law abiding individuals that become subject to even more stringent policies and regulations, whereas the escapist take advantage of the loopholes. The drive is to identify and plug the loopholes for improving implementation of the AML & CFT regulatory regime. The Anti-Money Laundering Act 2010 (AML Act) is applicable to 'Financial Institutions' and 'Non-Financial Businesses and Professions' (NFBPs). In the AML Act 'Accountants' are categorised as NFBPs, and their risk originates from the possibility of rendering of services to the persons who have proceeds of crime (from the predicate offences or foreign serious offences). The Institute of Chartered Accountants of Pakistan (ICAP) being the leading statutory body of the Accountancy Profession in Pakistan is actively engaged with the Financial Monitoring Unit (FMU) in creating awareness and providing input in the Mutual Evaluation review of the Asia Pacific Group for FATF. Further, ICAP taking cognizance of the significance and relevance of the country’s accountancy profession in understanding the exposure to the risks of money laundering and terrorism financing and combating these risks effectively, has developed a Guide for the Accountants on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT). President’s Pakistan has been working at all fronts to improve its controls on money laundering and terrorist financing. The Accountancy Profession can also contribute towards bringing in greater Page transparency and effective compliance, thereby contributing in improving Pakistan’s image and credibility. The much needed strive to move Pakistan out of the negative lists. Riaz A. Rehman Chamdia, FCA July - S 4 The Pakistan Accountant July - September 2018 July - September 2018 The Pakistan Accountant 5eptember 2018 The Pakistan Accountant 5