FATF and Pakistan

Research Society of International Law, Pakistan (RSIL) with support from the American Bar Association, Rule of Law Initiative (ABA-ROLI) has developed a Guide for the Effective Investigation and Prosecution of Money Laundering and Terrorist Financing in Pakistan. Following a comprehensive assessment of the existing capacity of criminaljustice actors in all four provinces in Pakistan,a draft Guide was prepared by our research team with input from international experts.This was followed by trainings in all four provinces in Pakistan involving over 200 investigators,prosecutors andjudges who gave substantive feedback on the content and structure of the draft Guide.

This Guide provides an overview of the global legal framework on AML/CTF with a focus on FATF and its methodology. It clarifies key concepts relating to the offence of money laundering and terrorism financing, the nature of terrorism financing in Pakistan and unique legal considerations applying to foreign terrorist fighters.It then explains the legislative and administrative framework for compliance with UN Security Council Resolutions relating to AMUCTF especially UNSCR 1267 and 1373.The domestic legal framework on AML/CTF is explained in detail,including the elements of each offence and the evidentiary standards required to prove each element. Special emphasis is placed on powers of investigators and the special investigative techniques available under Pakistani law. The legal basis and implementing mechanism for international cooperation is also a corefocus and detailed templates and checklists are provided for mutual legal assistance requests.

Research Society of International Law, Pakistan (RSIL) with support from the American Bar Association, Rule of Law Initiative (ABA-ROLI) has developed two Toolkiits on AML/CFTin Pakistan. These toolkits came about because RSIL identified the need to develop tools which delineate the various types of evidence which is available to investigators in Pakistan in AML/CFT offences, assist investigators in assessing the utility of such evidence for effective investigations and subsequent trial of the accused, guide investigators on the process of requesting or collecting such evidence and building a case based on such evidence.

To this end, RSIL constituted two Working Groups, consisting of investigators, prosecutors and judges from all provinces as well as legal and financial consultants, to support and guide the development of an AML/CFT Toolkit. Working Group 1 (WG1) consisted of justice sector actors and legal experts from across the country and was mandated to develop general operational guidelines for the effective investigation and prosecution of AML/CFT cases in Pakistan. Working Group 2 (WG2) was mandated to focus on financial evidence in AML/CFT cases, and consisted of financial experts, professional accountants, bankers, tax lawyers and representatives of federal agencies with an AML/CFT mandate.

Volume I of the AML/CFT Toolkit focuses on specific ML/TF offences within the domestic legal framework in Pakistan, and sets out operational guidelines for the investigation and prosecution of these offences. It includes:

• Information about ML/TF offences such as their legal references and texts, as well as their ingredients. It also lists the different types of evidence that may be relevant for the investigation of those offences, as well as a list of common predicate offences to money laundering and their ingredients.
• Guidelines for investigating and prosecuting ML/TF offences in Pakistan including an investigation process charts for ML and TF under Pakistani law and their explanations, as well as a description of each type of evidence associated with ML/TF offences. The toolkit also includes further evidence associated with establishing relationship of individuals with proscribed organisations.

Volume II of the AML/CFT Toolkit lays a special emphasis on the broad range of financial evidence which can be used as potential evidence during ML/TF investigations. It provides:

• A comprehensive summary table of financial records and documents relevant to ML/TF investigations, their source, and the relevant information contained in them, as well as a description of different sources of financial evidence in Pakistan.
• List of financial documents that can be used as evidence in ML/TF cases, including a description of each document and the relevant information contained within it. The toolkit also provides guidance about the relevant authority to approach to obtain each financial document.