News from Pakistan: FATF keeps Pakistan on the ‘Gray List’; warns about the action if Islamabad does not control the financing of terrorism | World News
The decision was taken in the plenary of the Financial Action Task Force (FATF), which concluded in Paris on Friday after six days of deliberations.
The FATF decided to continue Pakistan on the ‘Gray List’. The FATF also warned Pakistan that if it does not complete a complete action plan for June, it could have consequences for its business, a source said.
According to a statement issued by the FATF, all deadlines given to Pakistan to verify terrorist financing have come to an end, but the country has not been able to complete its action plan according to the agreed schedule.
To date, Pakistan has largely addressed 14 of the 27 elements of action that were given to control the financing of terrorist groups such as Lashkar-e-Taiba (LeT), Jaish-e-Mohammad (JeM) and Hizbul Mujahideen, They are responsible for a series of attacks in India.
“The FATF strongly urges Pakistan to quickly complete its full action plan by June 2020. Otherwise, if the next Plenary does not make significant and sustainable progress, especially in the prosecution and criminalization of terrorist financing, the FATF will take measures, which could include the FATF asking its members and urging all jurisdictions to advise their financial institutions to pay special attention to trade relations and transactions with Pakistan, “the statement said.
With Pakistan’s continuation on the ‘Gray List’, it will be difficult for the country to obtain financial assistance from the IMF, the World Bank, the ADB and the European Union, which increases problems for the nation in a precarious financial situation .
If Pakistan does not comply with the FATF directive, there is a good chance that the global body can place the country on the ‘Black List’ along with North Korea and Iran, the sources said.
With respect to Pakistan, the FATF said, all the terms of the action plan have expired and “again expresses its concern that Pakistan has not completed its action plan in accordance with the agreed deadlines and in light of the risks of terrorist financing emanating from the jurisdiction. ”
The FATF said Pakistan should continue working on the implementation of its action plan to address its strategic deficiencies, including: demonstrate that corrective actions and sanctions are applied in Anti-Money Laundering (AML) cases and combat the financing of violations of the terrorism, related to Terrorist Financing Risk Management (TF) and specific financial sanctions obligations (TFs).
Pakistan must demonstrate that law enforcement agencies (LEAs) are identifying and investigating the widest range of TF activities and that TF investigations and prosecutions are directed at designated individuals and entities, and those acting on behalf of or under the management of the persons or entities designated and prove effective the implementation of financial sanctions directed against all terrorists designated by the UN and those acting on their behalf or on their behalf, including prevention of collection and transfer of funds, the identification and freezing of assets and the prohibition of access to funds and financial services, the FATF said.
India has maintained that Pakistan extends regular support to terrorist groups such as LeT, JeM and Hizbul Mujahideen, whose main objective is India, and has urged the FATF to take action against Islamabad.
It is believed that Pakistan received strong support from Malaysia, but it did not impress Western nations due to India’s constant efforts in providing materials and evidence on Pakistan’s inaction to verify funding for terrorist groups operating from its territory, The sources said.
Pakistan needed 12 votes of 39 to exit the “Gray List” and move on to the “White List”. To avoid the “Black List”, you need the support of three countries.
The FATF meeting, February 16-21, was held a week after an anti-terrorism court in Pakistan condemned Hafiz Saeed, the intellectual author of the 2008 Mumbai attack and founder of LeT, 11 years in two cases of terrorism financing.
The Pakistani court ruling apparently came to please the FATF and western countries so that the country can leave the ‘Gray List’, sources said.
Saeed, a UN-designated terrorist in which the US UU. They have awarded a reward of USD 10 million, he was arrested on July 17, 2019 in cases of terrorist financing.
At the FATF meeting last month in Beijing, Pakistan gained support from Malaysia and Turkey in addition to the current FATF president, China.
At the Beijing meeting, Pakistan provided a list of the measures taken to comply with the FATF instructions.
Pakistan was included in the ‘Gray List’ by the FATF in June 2018 and was given an action plan to complete in October 2019 or runs the risk of being included in the ‘Black List’.
The FATF is an intergovernmental body established in 1989 to combat money laundering, terrorist financing and other threats related to the integrity of the international financial system.
It currently has 39 members, including two regional organizations: the European Commission and the Gulf Cooperation Council.
India is a member of the consultations of the FATF and its Asia Pacific Group.