Published 17:52 IST, October 31st 2021
Pakistan may be relegated to FATF "black list"; could face external financial aid cut
Pakistan has continued to retain its position in the FATF "grey list" on failing to check financing of outfits proscribed as "terrorist" by the UN, on its soil.
Pakistan has continued to retain its position in the Financial Action Task Force (FATF) "grey list" on failing to check the financing of outfits proscribed as "terrorist" by the United Nations (UN) on its soil. While the report claims that Pakistan has been able to make "significant progress" with regard to the Paris-based consensus, it needs to prosecute targeted senior leaders and commanders of UN-designated terrorist groups.
''The decision to include Pakistan in the "grey list" was taken by consensus and not by one country,'' FATF President Dr. Marcus Pleyer said while announcing the list of 23 countries earlier in October. He also dismissed rumours about political connotations regarding the FATF decision. "The FATF contains 39 jurisdictions and also the decision and Pakistan was taken by consensus," Pleyer had said, as reported by ANI.
Dr. Marcus Pleyer starts as FATF President today. He is the first FATF President with a two-year term. He is Deputy Director General in Germany’s Federal Ministry of Finance. See more information👉https://t.co/Fs32eXHjvq @BMF_Bund pic.twitter.com/vWtHlQ6yGy
— FATF (@FATFNews) July 1, 2020
Pakistan could be shifted to FATF "black list"
Among the listed 23 countries, Turkey has joined Islamabad in the "strategic deficiencies" list, which is externally identified as the "grey list." As per the FATF list, Turkey has also failed to curb terror-financing in its territorial boundaries. The move has levied a heavy toll on Pakistan since it snatches away vital support from Islamabad. "The only other steadfast supporters of Pakistan left in the FATF are China and Mongolia. And unless Pakistan is able to get the support of a third member, it will find it difficult to avoid black listing, should FATF conclude at its preliminary in March-April next year that Pakistan deserves the worst," ANI reported, citing a report in Islam Khabar.
The black listing might choke external financial assistance for the listed countries from the international community, including global financial institutions, ANI reported quoting the report. "The ball is truly in the court of Imran Khan who has pledged to turn Pakistan into Riyasat-e-Madina - an Islamic welfare state like the state of Madina, the Islam Khabar report stated, as per ANI. The FATF list will be a more stringent form of punishment for the financially-hit Pakistan, as per the news agency.
Meanwhile, the FATF list has moved Botswana and Mauritius to the "jurisdiction no longer subject to be increased monitoring" list. On the other hand, 22 other countries other than Pakistan have found a place in the "jurisdiction with strategic deficiencies" list, which includes Albania, Barbados, Myanmar, Morocco, Yemen, South Sudan, Haiti, and more. The FATF has also identified Jordan, Mali, and Turkey among the 23 countries after the last review. While many of these have been able to "make developments" in the jurisdiction’s AML/CFT regime, most of them have failed to prosecute money launderers and/or target "terror financing," as stated in the FATF report.
(With ANI inputs)
Image: AP, PTI
Updated 17:50 IST, October 31st 2021