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Published 08:16 IST, June 25th 2020

Pakistan to remain on FATF's Grey List for leaving terror groups JeM & LeT unchecked

In a blow to Pakistan that has completely failed to stop the breeding of terror outfits on its soil, FATF said it will keep Pakistan on its Grey list till Oct

Reported by: Navashree Nandini
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In yet another blow to Pakistan that has completely failed to stop the breeding of terror outfits on its soil, the global terror financing watchdog, FATF, on Wednesday decided to keep the Imran Khan-led country in the "Grey List". The FATF officials said that the decision was taken in the third and final plenary of the Task Force as the body observed that Pakistan has failed to check flow of money to terror groups like the LeT and the JeM - both of which are responsible for terror attacks in India. Notably, the plenary was held under the Chinese Presidency of Xiangmin Liu.

"The FATF plenary decided continuation of Pakistan in 'Grey List' till its next meeting to be held in October," an official privy to the development told PTI. The decision has been taken as Pakistan has failed to check flow of money to terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), the official said.

In February this year, JeM chief Masood Azhar and his family were reported missing, ahead of the beginning of the Financial Action Task Force (FATF) plenary meet. In the same month, 26/11 mastermind and LeT chief Hafiz Saeed was convicted for five and a half years in two terror financing cases against him. Additionally, he was slapped with a fine of Rs15,000 in each case. 

The FATF decision comes on a day the US Country Reports on Terrorism slammed Pakistan as a safe harbour for "regionally focused terrorist groups" and allowing LeT and JeM to operate from its soil. The US State Department report said Pakistan took modest steps in 2019 to counter terror financing and restrain India-focused militant groups from conducting large-scale attacks following the February attack on a security convoy in Pulwama in Jammu and Kashmir linked to Pakistan-based Jaish-e-Mohammed (JeM). 

READ | Pakistan Court yet again defers order in Hafiz Saeed's terror financing cases until Feb 11

"Pakistan took action against some externally focused groups, including indicting Lashkar e-Tayyiba (LeT) founder Hafiz Saeed and associates in three separate terrorism financing cases. "However, Pakistan remained a safe harbour for other regionally focused terrorist groups. It allowed groups targeting Afghanistan, including the Afghan Taliban and affiliated HQN, as well as groups targeting India, including LeT and its affiliated front organisations, and Jaish-e-Mohammed (JeM), to operate from its territory," the report said.

What it means for Pakistan?

With Pakistan's continuation in the 'Grey List', it will be difficult for the country 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.

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.

READ | FATF blacklist stares Pakistan in the face for inaction against terror

Pakistan of FATF list 

The FATF placed Pakistan on Grey List in June 2018. In August 2019, the Asia Pacific Joint Group (APJG) placed Pakistan in the enhanced follow up list for failure to meet the standards. The list was based on technical compliance and rated 'satisfactory' on meeting 10 points out of the 40. 

The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF currently has 39 members including two regional organisations -- the European Commission and Gulf Cooperation Council. India is a member of the FATF consultations and its Asia Pacific Group.

Pakistan may soon be on FATF's 'dark grey' list, here's what it means

(With PTI inputs)

08:16 IST, June 25th 2020