Financial Action Task Force (FATF) Plenary meeting in Paris. (Photo: Twitter/@FATFNews)
The UAE has indicated its strong commitment to working closely with FATF to address remaining areas of improvement through the implementation of an action plan, reports Asian Lite News
The Financial Action Task Force (FATF) has recognised that the United Arab Emirates has made positive progress in its anti-money laundering (AML), countering the financing of terrorism (CFT), and counter proliferation financing (CPF) efforts.
With the aim of ensuring the success and sustainability of the UAE’s efforts to strengthen its anti-financial crime framework, FATF has announced that it has placed the UAE under increased monitoring.
The UAE has indicated its strong commitment to working closely with FATF to address remaining areas of improvement through the implementation of an action plan. Noting that the UAE has “significantly strengthened” its anti-financial crime framework, the action plan builds on the firm foundations established and important efforts already underway.
The United Arab Emirates has entered the FATF’s Jurisdictions under Increased Monitoring list, often referred to as the 'grey list', following the conclusion of the FATF Plenary. See the full update here➡️https://t.co/cuEK8iKyJY#FollowTheMoneypic.twitter.com/u6gVWHUKJo
Commenting on the country’s ongoing efforts to fight financial crime, the UAE’s Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism said, “The UAE takes its role in protecting the integrity of the global financial system extremely seriously and will work closely with the FATF to quickly remedy the areas of improvement identified.
On this basis, the UAE said it will continue its ongoing efforts to identify, disrupt and punish criminals and illicit financial networks in line with FATF’s findings and the UAE’s National Action Plan, as well as through close coordination with our international partners.”
The UAE government said its commitment to advancing efforts to combat money laundering and counter terrorist financing remains a key pillar underpinning the country’s status as an attractive global business hub that operates in line with international standards.
Moreover, robust actions and ongoing measures taken by the UAE Government and private sector are in place to secure the stability and integrity of the country’s financial system, it said.
Pakistan Prime Minister Imran Khan (India Narrative_IANS)
The reality is however contrary to every assertion being made by Pakistan before the FATF. Not only has Pakistan not cleaned up its act on AML/CFT, but it also has no intention of doing so, said Giuliani….reports Asian Lite News
Ahead of the Financial Action Task Force (FATF) plenary on Pakistan scheduled later in February, Islamabad has yet to clean up its act on terror financing.
Federico Giuliani, covering Asian events for Il Giornale – Gli Occhi della Guerra, writing in Italy-based news website Inside Over said that the Paris-based watchdog placed Pakistan in the ‘Grey List’ in 2018 on its performance to address international concerns on Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT).
Pakistan will once again present its case before the international financial watchdog and try to convince it that it has delivered on all the high-level commitments it had made, not just in terms of tightening the laws and regulations but also in terms of successfully prosecuting and punishing people involved in money laundering and terror finance.
The reality is however contrary to every assertion being made by Pakistan before the FATF. Not only has Pakistan not cleaned up its act on AML/CFT, but it also has no intention of doing so, said Giuliani.
(Credit_FATF Twitter)
The reason is simple, the real problem is not that non-state actors are involved in money laundering and terror finance; it is the state agencies that are involved in this activity and they use the non-state actors and criminal networks as a front to carry out their nefarious activities.
Moreover, recent events in Europe have shown how Pakistani intelligence agencies are laundering money and financing terrorism in other countries, including in the UK, France, Netherlands, Sweden, Germany and Canada, said Giuliani.
Shortly after Pakistan was placed on the ‘Grey List’ the government announced that it had seized over PKR 1 billion from accounts linked to UN-designated terror groups.
But recently it was revealed that all the seized funds had since been released to the account holders; likewise for assets of designated individuals and entities.
The real big story has come out of London where a Pakistani origin man has been charged for trying to assassinate a dissident blogger based in the Netherlands. According to the prosecution, the funds for the assassin were routed through Hawala networks using Pakistani banks and money laundering networks.
Clearly, the only lot with any real interest in targeting the blogger was the Pakistani military establishment. The evidence presented in court clearly points at the intelligence agencies in Pakistan, though it does not name them, reported Inside Over.
These networks do not operate only inside Pakistan but are also operated by Pakistanis settled in Europe and North America.
Take for instance the bust in France of a Pakistani network involved in money laundering and fraud using fake companies and forged documents. The French police arrested 11 Pakistani-origin men and seized over Euro 1 million in this particular bust, said Giuliani.
The FATF should demand an explanation from Pakistan on the money laundering in the London case. The Europeans too should ask the Pakistanis some tough questions because the London case documents reveal that there were other Pakistanis dissidents in continental Europe who were on a hit list. This hitlist included a journalist in France as well, said Giuliani. (ANI)
Photo released by Pakistan's Press Information Department (PID) shows Pakistani Prime Minister Imran Khan (R) shakes hands with Turkish President Recep Tayyip Erdogan after signing joint declaration at a ceremony in Islamabad, capital of Pakistan, on Feb. 14, 2020.
The international anti money laundering watchdog, FATF’s decision to place Turkey in its grey list only signifies Istanbul’s failure or deliberate inability to check terror financing, a report by Mahua Venkatesh
As social media is abuzz with various hashtags relating to the Mumbai terror attacks that took place on this day in 2008, there are enough indications to suggest that illegal money may have trickled in larger quantum into India and South Asia through hawala channels in the last few months amid the Covid 19 pandemic.
Besides, the nebulous political framework in India’s neighbourhood along with the Financial Action Task Force’s (FATF) step to add Turkey along with the already existing Pakistan in its grey list is a wake-up call, security agency sources said. Hashtags NeverForgetNeverForgive, MumbaiTerrorAttacks among others were trending as Prime Minister Narendra Modi tweeted, “Tributes to those who lost their lives in the gruesome 26/11 terror attacks in Mumbai.”
The international anti money laundering watchdog, FATF’s decision to place Turkey in its grey list only signifies Istanbul’s failure or deliberate inability to check terror financing. The country’s proximity to Pakistan, Syria and Lebanon has also raised concerns for the global community.
(Credit_FATF Twitter)
Just Security, an online forum for analysis of national security and foreign policy in a recent report said that due to economic sanctions against the Taliban and the limited financial connectivity in Afghanistan, the hawala system is currently serving as the primary financial lifeline for the country. This system is also extensively used for doing trade with Pakistan.
The US and the international community must tighten mechanisms related to monitoring of anti-money laundering activities and countering financing of terrorism in and around Afghanistan especially as terrorist organizations like Al-Qaeda and the Haqqani Network have close associations with the Taliban.
“Terror activities need substantial resources and therefore financing is a critical area to monitor. The 26/11 Mumbai terror attack was well-planned and could not have been possible without transfer of large sums of money into sleeper cells in the country, particularly in Maharashtra,” BK Singh, Retired Joint CP (Commissioner) Crime, Delhi Police told India Narrative.
In the wake of heightened terror threats, experts said that coastal security especially on the Karachi and Mumbai belt has to be fortified further.
A file photo of 26/11 Attacks on Mumbai. Ten heavily armed Pakistani terrorists had landed undetected in Mumbai’s Badhwar Park in Colaba from the sea Nov 26, 2008, and laid siege to several key locations, including Chhatrapati Shivaji Terminus, Taj Mahal Hotel, Chabad House and Leopold Cafe. (Photo: Sandeep Mahankal/IANS)
According to the European Foundation for South Asian Studies, continued efforts towards understanding the changing terrorism landscape, including from an organizational perspective, remains key to maintaining the efficiency of ongoing counter-terrorism efforts and keeping the threat at bay.
Recently, Bangladesh authorities indicated that the incidents of violence against minorities in the South Asian nation and the attacks on Durga Puja pandals were the handiwork Pakistan supported radical group Jamaat-e-Islami. Not just that. Violence had also erupted in the country during Prime Minister Narendra Modi’s visit to Dhaka in March. Even then, the Bangladesh authorities said that the incidents were due to groups that had support from Pakistan.
The FATF has already warned that terror outfits “continue to pose a serious threat to international stability, security and peace.” FATF also noted that since 2020, both ISIL and Al Qaeda have increasingly turned to new payment technologies to raise, move and deploy funds.
Al-Qaeda militant (Wikipedia)
“As a result, the use of virtual assets by terrorists remains a risk. In addition, the risk emanating from expansion of affiliates of ISIL and Al Qaeda has been increasing over the past years,” the terror financing watchdog said.
ISIL, for example, has about $25-50 million in reserves. These funds help the group to sustain some activities and to seek a potential resurgence.
Singh added that state governments across the country need to work in sync to prevent any major or minor terror attacks. “Tracking suspicious transactions will be critical,” he said.
“Vigilance is important amid the rapidly changing situation and now with FATF placing Turkey in the grey list, India needs to further increase co-ordinations among state governments and security authorities,” Singh said.
(The content is being carried under an arrangement with indianarrative.com)
Malik said the confession by the Indian foreign minister had raised a big question on the integrity and transparency of FATF…reports Asian Lite News
Former Pakistan Interior Minister Rehman Malik has written a letter to FATF President Marcus Pleyer, seeking a probe into India’s role in keeping Pakistan on the grey list of the Financial Action Task Force (FATF), Dawn reported.
He has also written a letter to Prime Minister Imran Khan urging him to file a petition in the International Court of Justice (ICJ) against FATF’s discrimination and continued victimisation of Pakistan.
In his letter to the FATF president, Malik, who is also chairman of the Institute of Research and Reforms, called for investigating the confessional statement of the Indian foreign minister by a special team of FATF to expose the truth.
He said India was behind keeping Pakistan in the grey list, adding FATF was not taking Pakistan out of the grey list due to political pressure and influence by some countries, Dawn reported.
Malik said the confession by the Indian foreign minister had raised a big question on the integrity and transparency of FATF and confirmed the Indian involvement in pushing Pakistan into the grey list, Dawn reported.
“Unfortunately, FATF has not yet moved any action against Indian minister to prove the neutrality of FATF,” he said, as per the report.
“Despite clear evidence of involvement in terror financing, money laundering and even in heinous crimes of nuclear proliferation, India is being spared and no legal action is being initiated against it by FATF,” the letter added, as per the report.
He noted that some inimical countries were using FATF as a tool to put Pakistan under pressure with ulterior motives.
FATF too expressed concern about the current evolving money laundering and terrorist financing risk environment in Afghanistan…reports Mrityunjoy Kumar Jha
Once again, the Financial Action Task Force (FATF) has failed to blacklist Pakistan.
FATF, the global body working to combat financing of terrorism and money laundering let Pakistan off the hook, despite Islamabad’s repeated failure to adequately investigate and prosecute senior leaders and commanders of UN-designated terrorist groups. Nevertheless, Pakistan remains grey-listed -a dubious position that it has maintained for more than three years in a row. The main reason for Pakistan’s embarrassing status is its inability to tackle the money laundering and terror financing that FATF had earlier flagged.
FATF President Marcus Pleyer asserted that of the 27 action points agreed under the June 2018 plan, Pakistan has implemented 26 but has not addressed the most crucial point – the investigation of senior leaders and commanders of UN designated terrorist groups.
FATF also expressed concern about the current evolving money laundering and terrorist financing risk environment in Afghanistan. “We affirm recent UNSC resolutions on situation Afghanistan. We demand that country not be used to plan or finance terrorist acts,” Pleyer said.
Interestingly, the latest US Congressional report on terrorism “Terrorist and Other Militant Groups in Pakistan”, underlines that at least 12 groups designated as “foreign terrorist organizations” by the US are based in Pakistan including five that are India-centric. As per the US administration, Islamabad continues to remain a base of operations for numerous non-state militant groups, many with global reach.
In the last meeting of the FATF, Pakistan was given time until October to act against 8 terror groups – the Afghan Taliban, Jamaat-ud-Dawa (JuD), Haqqani Network, Jaish-e-Mohammed (JeM), Lashkar-e-Taiba (LeT), Falah-e-Insaniat Foundation, al-Qaeda and Islamic State.
“Some of these entities and their leaders are now part of the interim Afghan government. That makes it impossible for Pakistan to move against them,” says Shahbaz Rana, a Pakistani journalist.
Interestingly, few hours before of the FATF press conference on Thursday, the Pakistani foreign minister Shah Mahmood Qureshi and ISI chief Faiz Hameed were meeting Taliban ministers including Sirajuddin Haqqani, the interior minister of Afghanistan and chief of UN designated terror outfit Haqqani Network. He has a bounty of $ 10 million on his head. Experts believe that Pakistan has not given recognition to the new government in Afghanistan yet fearing possible action from FATF. The Pakistanis backed the Taliban diplomatically even financially, not to mention militarily.
FATF too expressed concern about the current evolving money laundering and terrorist financing risk environment in Afghanistan. “We affirm recent UNSC resolutions on situation Afghanistan. We demand that country not be used to plan or finance terrorist acts,” Pleyer said.
And Pakistan has to act by the next session of the Global watchdog scheduled to be held in February next year. Earlier China, Turkey and Malaysia have been helping Pakistan to prevent its blacklisting but now Turkey finds itself in the greylist of the FATF. (The content is being carried under an arrangement with indianarrative.com)
In the previous session in June this year, Pakistan was retained on the FATF ‘grey list’ for failing to effectively implement the global FATF standards…reports Asian Lite News
The Financial Action Task Force (FATF) meeting in Paris started a hybrid meeting on Tuesday to discuss boosting global action against terrorism financing and crimes.
The FATF is set to discuss the outcomes of the FATF’s survey to identify areas where divergent anti-money laundering and counter-terrorist financing rules or their implementation cause friction for cross-border payments.
Pakistan will present a review of its performance on the matter of terror financing and other issues, Ary News reported citing sources. “A decision with regard to change in the status of Pakistan will likely be decided by April 2022,” sources said.
According to the report by Ary News, the task force session will also review the ground realities of Pakistan and the implementation of legislation. “Any decision with regard to removal/non-removal of Pakistan from the grey list will be taken after it,” sources said.
In the previous session in June this year, Pakistan was retained on the FATF ‘grey list’ for failing to effectively implement the global FATF standards and over its lack of progress on investigation and prosecution of senior leaders and commanders of UN-designated terror groups.
FATF President Dr Marcus Pleyer had said Pakistan will remain on the grey list till it addresses all items on the original action plan agreed to in June 2018 as well as all items on a parallel action plan handed out by the watchdog’s regional partner – the Asia Pacific Group (APG) – in 2019.
Pleyer had noted that “Pakistan has made significant progress and it has largely addressed 26 out of 27 items on the action plan it first committed to in June 2018.”
He, however, added that the item on financial terrorism” still needed to be addressed which concerned the “investigation and prosecution of senior leaders and commanders of UN-designated terror groups”.
Likely to remain on grey list
Pakistan is expected to remain on the grey list of the Financial Action Task Force (FATF) till April 2022, as the country works towards completing an action plan to counter money laundering and terrorism financing.
Pakistan’s name is expected to remain on the grey list till the next session of the FATF in April 2022, because of its failure to ensure complete compliance with action plan, which it was presented by the watchdog’s regional partner, the Asia Pacific Group (APG).
Pakistan failed in completing at least six out of the 27-point action plan in its previous assessment at the FATF, which included enhancing international cooperation and demonstrating that assistance is being sought from foreign countries in implementing UN Security Council designations.
FATF assessments hold great importance for Pakistan as financial donors including International Monetary Fund (IMF), UN and the Egmost Group of Financial Intelligence Units are also going to be part of the FATF meeting as observer organisations.
The FATF said in a statement that it “will finalise key reports, including the revised guidance on virtual assets and their service providers and discuss the next steps to strengthen its standards on transparency of beneficial ownership”.
On June 25, the FATF decided to keep Pakistan on its grey list, handing over six new anti-money laundering areas to work on.
It however, recognised Pakistan’s progress and efforts to address items in its country action plan that refers to combating terror financing. (with inputs from ANI and Hamza Ameer from IANS)
Fabien Baussart, founder and president of the think tank Center of Political and Foreign Affairs said that FATF will fail in its duty if it delays blacklisting Pakistan for its terrorist sponsorship….reports Asian Lite News
Pakistan, which is on the Financial Action Taken Force (FATF) grey list must be brought under the black list for state sponsoring terror.
Fabien Baussart, writing in The Times of Israel said that FATF will fail in its duty if it delays blacklisting Pakistan for its terrorist sponsorship.
Fabien Baussart is the founder and president of the think tank Center of Political and Foreign Affairs, which organises events and discussions on various geopolitical topics around the world.
Pakistan is the only country in the world that hosts thousands of terrorists, run terrorist training camps for global jihadis and has an army that openly controls many of these terrorist groups and carries out terrorist attacks against sovereign nations.
Yet, Pakistan is not on any terrorist sponsor list nor is it punished with sanctions unlike other countries who have significantly little role to play in global jihad, said Baussart.
imran (ANI)
In the latest international reports highlighting Pakistan’s terror links, the US Congressional report (September 2021) gives a brief account of terrorist groups housed in Pakistan with the complicity of the state agencies, especially the Pakistan Army.
As per the US administration, Islamabad continues to remain a base of operations for numerous non-state militant groups, many with global reach.
Quoting successive US State Department reports, the Congressional briefing pointed out that Pakistan remained a safe haven for terrorism despite claims to the contrary.
Pakistan’s promises to the international community about taking action against terrorist groups have remained merely that, promises. In fact, the report said, the so-called action taken by the Pakistan government and its military were inconsistent. In other words, Pakistan refused to take any action against terrorist groups and their sanctuaries, reported The Times of Israel.
The latest Congressional report must caution Financial Action Taken Force (FATF) from giving any further concessions to Pakistan.
The premier anti-terrorist financing body has put Pakistan on the `grey list` but so far has remained shy of blacklisting the country despite irrefutable evidence from different, independent agencies and countries.
Pakistan’s case is up for review next month and the FATF must put on record the Congressional as well as other recent reports of Pakistan’s close ties to global and regional militant groups.
As reports after report suggest Pakistan has become a classic hybrid state with the military and militants influencing the state and its actions.
Pakistan must be held accountable for its involvement with terrorist groups and refusal to pay heed to requests and warnings from international watchdogs like FATF, said Baussart.
FATF must also put on record evidence collated by various countries of Pakistan’s role in helping a militant group, the Taliban, from overthrowing an elected government in Afghanistan.
Pakistan’s association with global terrorist outfits like the Haqqani Network, known for hosting groups like Al Qaeda, needs to be brought on record, added Baussart. (ANI)
Pakistan was retained on the grey list, or list of countries under “increased monitoring”, as the Paris-based UN watchdog judged it deficient in prosecuting the top leadership of UN Security Council-designated terror groups, reports Asian Lite News
Pakistan has been hit with massive losses to its GDP worth $38 billion because of the Financial Action Task Force’s (FATF) decision to retain the country on its grey list since 2008, according to a research paper published by the Islamabad-based independent think-tank, Tabadlab.
The paper titled, “Bearing the cost of global politics — the impact of FATF grey-listing on Pakistan’s economy”, has been authored by Naafey Sardar.
This comes against the backdrop of a fresh grey listing tag for Pakistan.
Pakistan was retained on the grey list, or list of countries under “increased monitoring”, as the Paris-based UN watchdog judged it deficient in prosecuting the top leadership of UN Security Council-designated terror groups.
The list includes Lashkar-e-Taiba, Jaish-e Mohammad, Al Qaeda and the Taliban.
As per the paper, results suggest that FATF grey-listing, starting in 2008 and till 2019, may have resulted in cumulative real GDP losses of approximately $38 billion.
Moreover, estimates indicate that a large proportion of this response (58 per cent) was driven by reduction in consumption expenditures (both household and government).
Exports and inward foreign direct investment are also partially responsible for this decline in GDP, with associated cumulative losses of $4.5 billion and $3.6 billion respectively. These results point to the significant negative consequences associated with FATF grey-listing.
The estimates from this paper point to the significant negative implications of FATF’s grey listing for Pakistan, thus emphasising the need for policymakers to comply with the FATF on the adoption of AML/CFT legislation to avoid future economic losses, it argued.
With the FATF’s latest action, Pakistan, even after elargely completing’ 26 of the 27 targets, will remain in the grey list for at least another year and deliver on seven new parallel action points to address deficiencies in its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime, The Dawn said in a report.
The watchdog said in a statement that since June 2018, when Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its strategic counter terrorist financing-related deficiencies, the country’s continued political commitment has led to significant progress across a comprehensive CFT action plan.
The FATF recognises Pakistan’s progress and efforts to address these CFT action plan items and notes that since February 2021, Islamabad has made progress to complete two of the three remaining action items on demonstrating that effective, proportionate and dissuasive sanctions are imposed for TF convictions and that the country’s targeted financial sanctions regime was being used effectively to targeted terrorist assets.
Pakistan has now completed 26 of the 27 action items in its 2018 action plan.
“The FATF encourages Pakistan to continue to make progress to address as soon as possible the one remaining CFT-related item by demonstrating that TF investigations and prosecutions target senior leaders and commanders of UN designated terrorist groups.”
FATF said Pakistan should continue to work to address its strategically important AML/CFT deficiencies, namely by: (1) enhancing international cooperation by amending the MLA law; (2) demonstrating that assistance is being sought from foreign countries in implementing UNSCR 1373 designations; (3) demonstrating that supervisors are conducting both on-site and off-site supervision commensurate with specific risks associated with DNFBPs, including applying appropriate sanctions where necessary; (4) demonstrating that proportionate and dissuasive sanctions are applied consistently to all legal persons and legal arrangements for non-compliance with beneficial ownership requirements; (5) demonstrating an increase in ML investigations and prosecutions and that proceeds of crime continue to be restrained and confiscated in line with Pakistan’s risk profile, including working with foreign counterparts to trace, freeze, and confiscate assets; and (6) demonstrating that DNFBPs are being monitored for compliance with proliferation financing requirements and that sanctions are being imposed for non-compliance.
Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.
This is often externally referred to as the “grey list”.
The FATF and FATF-style regional bodies (FSRBs) continue to work with the jurisdictions below as they report on the progress achieved in addressing their strategic deficiencies. The watchdog calls on these jurisdictions to complete their action plans expeditiously and within the agreed timeframes.
The FATF welcomes their commitment and will closely monitor their progress.
It does not call for the application of enhanced due diligence measures to be applied to these jurisdictions, but encourages its members and all jurisdictions to take into account the information presented below in their risk analysis.
The FATF identifies additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
A number of jurisdictions have not yet been reviewed by the FATF or their FSRBs, but will be in due course.
In October 2020, the FATF decided to recommence work, paused due to the Covid-19 pandemic, and to identify new countries with strategic AML/CFT deficiencies and prioritise the review of listed countries with expired or expiring deadlines of action plan items.
Albania, Barbados, Botswana, Cambodia, Cayman Islands, Ghana, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Uganda, and Zimbabwe have had their progress reviewed by the FATF since February 2021.
Following review, the FATF now also identifies Haiti, Malta, Philippines, and South Sudan.
FATF president said the multilateral watchdog’s members could consider removing Pakistan from the grey list only after conducting two separate on-site inspections following the completion of the old and new action plans, reports Asian Lite News
The Financial Action Task Force (FATF) has refused to take Pakistan out of the ‘Grey List’ yet again. On Friday, it said Pakistan had failed to take appropriate action against UN-designated terrorists such as 26/11 accused Hafiz Saeed and JeM chief Masood Azhar.
Although the global anti-money laundering and terror financing body has acknowledged some progress made by Pakistan, it said the country should continue to work to address its strategically-important deficiencies.
FATF president Marcus Pleyer said the decision was taken at the conclusion of the virtual plenary of the Paris-based organisation. Pakistan continues to remain on “increased monitoring list”, Pleyer said at a virtual press conference. “Increased monitoring list” is the another name for the Grey List.
Pleyer said Pakistan has now completed 26 of the 27 action items given to it in 2018. The FATF has asked Pakistan to take action against UN designated terrorists, he said.
The UN designated terrorists based in Pakistan include Jaish-e-Mohammed chief Azhar, Lashker-e-Taiba founder Saeed and its “operational commander” Zakiur Rehman Lakhvi. All three are most wanted terrorists in India for their involvement in numerous terrorist acts.
On June 4, in a follow-up report published on Pakistan, the FATF had said, “Overall, Pakistan has made notable progress in addressing the technical compliance deficiencies identified in its MER and has been re-rated on 22 Recommendations.”
Pleyer said the Pakistan government has failed to check risk of money laundering, leading to corruption and terror financing.
“The FATF encourages Pakistan to continue to make progress to address as soon as possible the one remaining Combating the Financing of Terrorism-related item by demonstrating that Terror Financing investigations and prosecutions target senior leaders and commanders of UN designated terrorist groups,” an FATF statement said.
FATF president Pleyer said the multilateral watchdog’s members could consider removing Pakistan from the grey list only after conducting two separate on-site inspections following the completion of the old and new action plans. The inspections would have to demonstrate that improvements made by Pakistan are sustainable, he told a virtual news briefing.
An outcome statement issued at the end of the meeting referred to the remaining item in the old action plan and said: “The FATF encourages Pakistan to continue to make progress to address as soon as possible the one remaining CFT (counterterrorist financing)-related item by demonstrating that TF (terrorist financing) investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups.”
So far, Pakistani authorities have only prosecuted senior leaders of LeT and JuD, including Saeed and several of his senior aides. Saeed and some of his aides are currently serving sentences given to them after they were found guilty in a string of terror financing cases last year.
However, no action has been taken against leaders of JeM, such as its chief Masood Azhar, despite the group being linked to several high-profile terror attacks in recent years, or the Afghan Taliban, which has stepped up fund raising on Pakistani soil in recent weeks against the backdrop of the withdrawal of US and NATO forces from Afghanistan.
Pleyer said the new action plan to tackle money laundering was drawn up after FATF’s regional partner, the Asia Pacific Group, identified a “number of serious issues” during an assessment in 2019. The outcome statement said Pakistan had committed itself to the new action plan this month to address “strategic deficiencies”.
The new action plan includes six items, including enhancing international cooperation by amending Pakistan’s mutual legal assistance law, and seeking help from foreign countries to implement counterterror designations under UN Security Council Resolution 1373.
Time to call Pakistan’s bluff
However, despite warnings, Pakistan’s machinations to hoodwink the international community remain the same. In 2018, when it was put in the ‘Grey List’ Islamabad had obliged to fulfill a 27-point action plan. But it has played within legal loopholes to provide a cosmetic pretence of action. Instead of taking action against terror groups, Pakistan has rebranded terror groups in Kashmir under the name of The Resistance Front (TRF).
This newly-formed group, according to security experts, is just old wine in a new bottle. Experts believe that TRF is only a new name given to Lashkar-e-Toiba, Hizbul Mujahideen, and Jaish-e-Mohammed (JeM), who are active in the Valley.
Financial Action Task Force (FATF) Plenary meeting in Paris. (Photo: Twitter/@FATFNews)
But the recent verdict to acquit Omar Sheikh the prime accused in Daniel Pearl’s murder has again exposed Pakistan’s game plan. Soon after the verdict was given, Sheikh and four of his associates were shifted to a newly-built government facility, with family access from 9 AM to 5 PM.
Another interesting fact is the pruning of a list of 7,600 individuals Pakistan had vowed to take action against terror financing to FATF in September 2018. However, by January 2019, 4,000 names from that list, which were booked under the Anti-Terrorism Act, went missing.
The latest development comes only a few weeks ahead of a meeting of the FATF –the Paris-based global watchdog– to decide on Pakistan’s grey list status, reports Asian Lite News
A regional affiliate of the Financial Acton Task Force (FATF) has retained Pakistan on the ”Enhanced Follow-up” list and asked the country to strengthen its implementation of anti-money laundering and combating terror financing measures.
The FATF Asia Pacific Group on Friday released a second Follow up Report (FUR) on the Mutual Evaluation of Pakistan on the compliance of 40 technical recommendations.
The report said Pakistan was re-rated to ‘compliant’ status on five counts and on 15 others to ‘largely compliant’ and on yet another count to ‘partially compliant, Dawn reported.
Financial Action Task Force (FATF) Plenary meeting in Paris. (Photo: Twitter/@FATFNews)
The two recommendations on which Pakistan was downgraded to ‘non-compliant were 37 and 38 due to “insufficient progress” and pertained to mutual legal assistance (MLA) with other countries and freezing and confiscation of assets and accounts.
“Pakistan will move from enhanced (expedited) to enhanced follow-up, and will continue to report back to the APG on progress to strengthen its implementation of anti-money laundering and combating financing terror (AML/CFT) measures,” the APG said.
It is pertinent to note that the development comes only a few weeks ahead of a meeting of the FATF –the Paris-based global watchdog– to decide on Pakistan’s grey list status.
The 41-member APG in August 2019 had downgraded Pakistan”s status to the ”Enhanced Follow-up” category from the ”Regular Follow-up” over technical deficiencies to meet normal international financial standards by October 2018.
Hafiz Saeed
The APG has noted that Pakistan has taken positive steps in enacting the new Mutual Legal Assistance Act 2020 (MLAA) and establishing MLA processes and timeframes.
However, it added, that the “restrictive conditions” imposed on the provision of MLA through the new requirement to inform the subject of any request to restrain or confiscate assets is a significant deficiency that prevents Pakistan from maintaining the confidentiality of requests and undermines its ability to act expeditiously.
Pakistan has been on the FATF’s grey list since June 2018.
Global terror financing watchdog, FATF, in February this year, had retained Pakistan on its “grey list” till June after concluding that Islamabad failed to address its strategically important deficiencies, to fully implement the 27 point action plan that the watchdog had drawn up for Pakistan.
Pakistan’s continuation on the ‘grey list’ means that it will not get any respite in trying to access finances in the form of investments and aid from international bodies including International Monetary Fund (IMF).
Pakistan Army Chief Gen Qamar Javed Bajwa meets Prime Minister Imran Khan
Pakistan is facing the difficult task of clearing its name from the FATF grey list. As things stand, Islamabad is finding it difficult to shield terror perpetrators and implement the FATF action plan at the same time.
Early this year, Islamabad-based think tank Tabadlab revealed that Pakistan sustained a total of USD 38 billion in economic losses due to FATF’ decision to thrice place the country on its grey list since 2008.
The research paper titled “Bearing the cost of global politics — the impact of FATF grey-listing on Pakistan’s economy” states that that grey-listing events spanning from 2008 to 2019, may have resulted in total GDP losses worth USD 38 billion. (ANI)
