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Paris terror meet set to turn screws on Pakistan over funding of militants

The three-day FATF meeting, which starts on Sunday, will consider technical compliance to the requirements of the FATF recommendations agreed upon by Pakistan.

Written by Sushant Singh | New Delhi | Updated: February 13, 2018 8:51 am
Paris terror meet set to turn screws on Pakistan Pakistan has fallen short of the requirements by not promulgating legislation to stop money laundering and terrorist financing. (Photo for representation)

Pakistan is likely to be “grey-listed” for terrorist financing and money laundering by the multi-national Financial Action Task Force (FATF) at its plenary meeting in Paris early next week. This will put Islamabad under stringent checks in conducting international financial transactions and affect foreign investments and commercial lending to Pakistan.

The three-day FATF meeting, which starts on Sunday, will consider technical compliance to the requirements of the FATF recommendations agreed upon by Pakistan. Pakistan has fallen short of the requirements by not promulgating legislation to stop money laundering and terrorist financing. It has also not taken action against “proscribed groups” under UN Security Council Resolution 1267, such as the Jamaat-ud-Dawa, Lashkar-e-Taiba, and the Falah-e-Insaniat Foundation which continue to operate freely and raise funds openly within Pakistan. Also Read: Nirmala Sitharaman on Jammu attack: Pakistan will pay… demography suggests local help to terrorists

The FATF is an inter-governmental body established in 1989 that monitors the progress of various countries in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.

Pakistan, which had earlier been on the FATF “grey list” from 2012 to 2015, has now been co-nominated for grey listing by the United States, United Kingdom, France and Germany in the 37-member grouping. This follows a compliance report submitted by Islamabad on the assurances and promises made after the last FATF meeting in Buenos Aires after India and the US raised the issue of terror financing by Pakistan.

China was the only member country which opposed the FATF’s consensus against Pakistan at the Buenos Aires plenary meeting. Beijing is expected to oppose Pakistan’s nomination to the “grey list” even at Paris but FATF rules require at least three full member countries to block a nomination. The FATF meeting at Buenos Aires noted: “Pakistan made some progress to implement UNSCR 1267. However, concerns related to UNSCR 1267 remain, specifically that designated individuals and entities of concern continue to receive and disperse funds without controls being applied by the competent authorities”.

Sources said Pakistan had been lobbying strongly to garner more support from FATF members like Russia, Gulf Coordination Council, and Turkey at Paris but the outcome of its attempts will only be known next Tuesday at the end of plenary meeting. Significantly, India, which is a full member of FATF, is not among the countries that have nominated Pakistan. The process for nominating Pakistan, sources said, had been led by the US Treasury department which reflects the Trump administration’s hardening position on Pakistan in recent months.

In April, Pakistan is due for a full-scale extensive review or Mutual Evaluation Report (MER) of its financial system by the FATF. This is a detailed process which takes more than 18 months of review, followed by 12 months of analysis. Pakistan will be again in the spotlight at FATF after the completion of MER which will recommend a firm action plan to Islamabad to curb terrorist financing.

The “grey list” has countries FATF regards as having inadequate provisions in place to combat money laundering and terror financing and are subject to the FATF’s monitoring process. The black list includes either countries which have “strategic deficiencies” with respect to these provisions (Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu, Yemen) or “high-risk and non-cooperative jurisdictions” such as North Korea and Iran.

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  1. Amjad Miandad
    Feb 13, 2018 at 3:38 pm
    haha Im amazed. Its called politics. Till US needed Mujahideens they were state guests. Now they don't need them these are terrorists. Wait till again they call them as their state guests :D India is for sure exposing its opportunists nature to gain benefits out of this short term reversed air against Pakistan that is all due to change of mind of Pakistan's policy to go for a bigger role and bigger achievements and laid off America and its interests from Pakistan's agenda and priorities. It's Pakistan here guys be mature you guys can only play dirty by under table politics and act stealthily under shadow using US but again its Pakistan here, bold and beautiful :D Don't panic on my claims please if you still can't realize the failure of multinational intelligence cooperation against Pakistan. If you still unable to see the 16 years of USA, NATO, Indian failures their failed offenses against Pakistan despite the collaboration of few corrupt politicians in Pakistan and Afghanistan.
    1. Muftkhor By Choice
      Feb 13, 2018 at 9:27 am
      Pakistan has promulgated an ordinance amending the Anti-Terrorism Act, 1997 with regards to proscription of terrorist individuals and organisations to include en ies listed by the United Nations Security Council (UNSC) — in a move that would end a longstanding ambiguity over the status of Hafiz Saeed-linked Jamaatud Dawa and Falah-i-Insaniat Foundation (FIF) by firmly placing them on the list of of proscribed groups.
      1. Narendra M. Apte
        Feb 13, 2018 at 9:02 am
        1. Pakistan has nine lives and it has been proved again and again in the past. Hence, in all likelihood Pakistan will neither be punished for its support to terrorists nor will it be declared as a country which supports terrorists. 2. Is it not true that very survival of political system of Pakistan depends upon Pakistani political parties’ support to an impossible and foolish cause called Azad Kashmir? Hence no politician of Pakistan will ever show courage to say that people of Kashmir can live in peace if they accept that Kashmir is and will forever remain a part of Indian Union. 3. We know that Pakistan’s support for cause of Azad Kashmir means support to terror groups who are trained and funded by the Pakistani army and other establishments Therefore my guess is that until USA and European countries impose sanctions on Pakistan for financial and logistic support given to terror groups, nothing much will be achieved.
        1. Socrates Santos
          Feb 13, 2018 at 8:48 am
          Ahead of the meet, Pakistan President has signed ordinance to rein in outfits banned by UN includes al-Qaida, Tehreek-e-Taliban Pakistan (TTP), Lashkar-e-Jhangvi, Jamaatud-Dawa (JuD), Falah-e-Insaniat Foundation, Lashkar-e-Taiba (LeT) and others. The ordinance amends a section of the Anti-Terrorism Act, enabling the authorities to take action against the UNSC-proscribed individuals and terror outfits, like sealing their offices and freezing their bank accounts (ToI report - Feb 13, 2018)
          1. Rekha Mane
            Feb 13, 2018 at 10:14 am
            Yes, until now, pakistan was saying hafiz saeed was not a terrorist China had ed India's every claim by using veto. Today, pak declaring saeed a terrorist should be seen as the proof of white lies. China also should be stripped off of it's UN membership for using veto notoriously. If Pak could hide osama in its own backyard, what stops the world to impose stringent sanctions open a full fledged united war against pak army itself for shielding terrorists? This nuisance will stop for once and for all if pak's army itself is completely destroyed it'snuclear weapons taken control of by UN council. The day is not far away when the terrorists coulduse the sameweapons to destroy the world.
            1. Muftkhor By Choice
              Feb 13, 2018 at 10:27 am
              Correction: Veto used by China is for Azhar Masood and not Hafiz Saeed. HS is already a global designated terrorist while AM isn't.