Pakistan remain on FAFT Grey list, India urges it to address global concerns on terrorism

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Published: June 22, 2019 5:43:30 PM

India on Saturday urged Pakistan to address global concerns on terrorism by taking "credible" and "irreversible" steps, and sustainable measures to address global concerns related to terrorism and terrorist financing emanating from any territory under its control.

Pakistan, FAFT Grey list, India, global terrorism, terrorism, Financial Action Task Force, terrorism in pakistan, Jaish e Mohammad, Masood Azhar, Lashkar  e Taiba, LeT, Hafiz SaeedIn the wake of the FATF warning, India on Saturday said Pakistan should take “credible” and “irreversible” steps to address global concerns related to terrorism. (Reuters)

In a major embarrassment to Pakistan, it continues to remain on the grey list of international body Financial Action Task Force (FATF), and will continue to lose $10 billion if it failed to check terror financing and comply with the requirements in four months. The country which is already reeling under acute financial crisis can be denied aid by international bodies.

India on Saturday urged Pakistan to address global concerns on terrorism by taking “credible” and “irreversible” steps, and sustainable measures to address global concerns related to terrorism and terrorist financing emanating from any territory under its control.

Responding to media queries, External Affairs Ministry spokesperson Raveesh Kumar said that “The FATF has decided to continue to keep Pakistan on its compliance document (i.e. Grey List) for the ICRG monitoring for its failure to complete the action plan items due in January and May 2019.”

Pakistan should take to take all necessary steps to effectively implement the FATF Action Plan fully within the remaining time frame i.e. by September 2019 in accordance with its political commitment to the FATF, Kumar added.

Since June last year, Pakistan had made “a high-level political commitment to work with the FATF and APG (Asia-Pacific Group on Money Laundering) to strengthen it’s AML/CFT (Anti-Money Laundering and Terrorist Financing) regime and to address its strategic counter-terrorist financing-related deficiencies.

While noting that Pakistan has taken steps towards improving its AML/CFT regime, including the recent development of its TF (Terrorist Financing) risk assessment addendum; FATF has pointed out that it does not demonstrate a proper understanding of that country’s transnational TF risk.

In a statement issued after three days of intense deliberations of the international watchdog Orlando, Florida, founded by G-7 (Group of seven industrialized nations) in 1989, it said that not only did Pakistan fails to complete its action plan items with January deadlines, that the country has also failed to complete May 2019. It also urged Pakistan to complete its action plan by October 2019 before it expires.

Unfortunately for Pakistan, FATF’s Asia-Pacific Group (APG) which met in China in mid-May it failed to be impressed by that country’s action on terror financing.

In the wake of the FATF warning, India on Saturday said Pakistan should take “credible” and “irreversible” steps to address global concerns related to terrorism.

According to FATF, Pakistan must continue to work on implementing its action plan to address its “strategic deficiencies”, and to “adequately demonstrate that it understands TF risks posed by the terrorist groups.

It has to show that remedial actions and sanctions as stated by FATF applied in cases of AML/CFT violations, and are in compliance by financial institutions.

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Under the steps that Pakistan has to take, it has to prove that the law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activity. And that TF investigations and prosecutions target designated persons and entities, says the FATF.

Also, Pakistan should also show effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists and those acting for or on their behalf and also preventing the raising and moving of funds, identifying and freezing assets including movable and immovable.

The 1267 refers to the UN Sanctions Committee, which has listed Pakistan-based Jaish-e-Mohammad chief Masood Azhar and Lashkar-e-Taiba (LeT) chief Hafiz Saeed as global terrorists.

Earlier this year, the international body had in one of its meeting comes hard on Pakistan stating that it had not demonstrated a proper understanding of the Terror Financing risks posed by various terrorist outfits.

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