Terrorist Nation Pakistan To Remain In FATF ‘Grey List’

PARIS (France): In a setback for Pakistan, the global terror financing watchdog Financial Action Task Force (FATF) has decided to keep Pakistan in the Grey List’ for terror financing. The Pakistan government will have to pass amendments into Anti Money Laundering (AML) and Foreign Exchange Regulation laws within the next three months from the Parliament for complying with the Financial Action Task Force (FATF) conditions.

The decision has been taken as Pakistan has failed to check the flow of money to terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM). 

The decision was taken at the Financial Action Task Force’s third and final plenary held virtually due to the COVID-19 pandemic. The plenary was held under the Chinese Presidency of Xiangmin Liu.

Now, Pakistan will continue to remain in the Grey List till FATF’s next meeting to be held in October. The decision would make it difficult for Pakistan to get financial aid from the IMF, World Bank, ADB and the European Union, thus further enhancing problems for the nation which is in a precarious financial situation.

If Pakistan fails to comply with the FATF directive by October, there is every possibility that the global body may put the country in the ‘Black List’ along with North Korea and Iran.

A strong Indian delegation with experts on money laundering and terror financing participated in the half-day FATF plenary.

India has been maintaining that Pakistan extends regular support to terror groups like LeT, JeM and Hizbul Mujahideen, whose prime target is India, and has urged FATF to take action against Islamabad.

The FATF currently has 39 members including two regional organizations — the European Commission and Gulf Cooperation Council.

Background:

The FATF had placed Pakistan on the grey list in June 2018 and placed 27 conditions for review for complying in one year, till Sept 2019. Pakistan was so far given three extensions of three months each, every time to comply with 27-point action plans.

Out of the 27-point action plan, the FATF had so far declared Pakistan fully compliant on 14 points and now there is a deadline of September/October 2020 for complying on the remaining 13 points in a bid to ensure exit from the grey list of the watchdog.

According to the list of the remaining 13 points of 27 action plan are:

• (1) Pakistan will have to demonstrate the effectiveness of sanctions including remedial actions to curb terrorist financing in the country;
• (2) Pakistan will have to ensure improved effectiveness for terror financing of financial institutions with particular to banned outfits;
• (3) Pakistan will have to take actions against illegal money or value transfer services (MVTS) such as hundi-hawala;
• (4) Pakistan will have to place sanction regime against cash couriers;
• (5) Pakistan will have to ensure logical conclusion from ongoing terror financing investigation of law enforcing agencies (LEAs) against banned outfits and proscribed persons;
• (6) Pakistani authorities will have to ensure international cooperation based investigations and convictions against banned organisations (list provided to Pakistan) and proscribed persons (list provided to Pakistan);
• (7) The country will have to place effective domestic cooperation between Financial Monitoring Unit (FMU) and LEAs in the investigation of terror financing;
• (8) Prosecution of banned outfits and proscribed persons (list provided to Pakistan);
• (9) Demonstrate convictions from the court of law of banned outfits and proscribed persons (list provided to Pakistan);
• (10) Seizure of properties of banned outfits and proscribed persons (list provided to Pakistan);
• (11) Conversion of madrassas to schools and health units into official formations (list provided to Pakistan);
• (12) To cut off funding of banned outfits and proscribed persons; and
• (13) Pakistan will have to place a permanent mechanism for management of properties and assets owned by the banned outfits and proscribed persons (list provided to Pakistan).

from League of India