More pain for Pakistan? After US military aid cut, FATF likely to grey list Islamabad over terror-funding, money-laundering

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New Delhi | Updated: February 13, 2018 10:07 AM

Pakistan is likely to face more embarrassment from the international fraternity over issues such as terrorism financing and money laundering, with the multi-national Financial Action Task Force (FATF) set to tighten the noose around Islamabad at its upcoming three-day meet in Paris that begins on Sunday.

PAKISTAN SANCTIONIt has been learnt that the FATF has taken cognizance of serious issues like Pakistan’s inaction against terror groups such as the Jamaat-ud-Dawa, Lashkar-e-Taiba, and the Falah-e-Insaniat Foundation

Pakistan is likely to face more embarrassment from the international fraternity over issues such as terrorism financing and money laundering, with the multi-national Financial Action Task Force (FATF) set to tighten the noose around Islamabad at its upcoming three-day meet in Paris that begins on Sunday. According to a report in The Indian Express, the FATF could “grey-list” Islamabad, a measure that will put Pakistan under scanner whenever it conducts international financial transactions and also affect foreign investments in the country.

It has been learnt that the FATF has taken cognizance of serious issues like Pakistan’s inaction against terror groups such as the Jamaat-ud-Dawa, Lashkar-e-Taiba, and the Falah-e-Insaniat Foundation, groups that continue to operate freely and raise funds openly within Pakistan despite being “proscribed groups” under UN Security Council Resolution 1267.

Notably, this will not be the first such measure against Pakistan by the FATF with the multi-national body having “grey listed” Islamabad from 2012 to 2015 as well. Now, United States, United Kingdom, France and Germany have asked for putting Pakistan in the greylist. FATF considers the “grey list” countries as nations having inadequate provisions in place to combat money laundering and terror financing and are subject to the FATF’s monitoring process.

The FATF is a 37-member grouping, an inter-governmental body that was set up in 1989. It generally reviews money laundering and terrorist financing techniques and counter-measures and promotes the adoption and implementation of appropriate measures globally.

The measure could come as another blow to Pakistan after the Donald Trump administration suspended over USD 1.15 billion in security aid and the supply of military equipment to it in January this year for failing to clamp down on the dreaded Afghan Taliban and the Haqqani Network terror groups and dismantle their sanctuaries on its soil The freezing of all security assistance to Pakistan comes after President Trump in a New Year’s Day tweet accused the country of giving nothing to the US but “lies and deceit” and providing “safe haven” to terrorists in return for USD 33 billion aid over the last 15 years

The suspended amount also includes USD 255 million in Foreign Military Funding (FMF) for the fiscal year 2016 as mandated by the Congress In addition, the Department of Defense has suspended the entire USD 900 million of the Coalition Support Funds (CSF) money to Pakistan for the fiscal year 2017 and other unspent money from previous fiscal years.

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