The FATF, the apex body to crack down on the economic logistics of terrorism in the world, has decided to keep Pakistan in the additional monitoring gray list. The great thing is that Turkey, which supported Pakistan on Kashmir, has also been put on the watch list.
After the FATF plenary meeting held in Paris, the organization’s president Marcus Player said that Pakistan was judged on 34 points of the action plan set in 2018 and 2021. Pakistan has shown progress on 26 out of 27 fixed in the 2018 Action Plan. But the one point at which it still has to provide evidence of concrete action, it is yet to show concrete action against the terrorists present in the UN List and evidence of stopping their economic logistics. Apart from this, steps are yet to be taken on some action points fixed on the issue of money laundering.
The FATF chief also answered questions being raised by Pakistan in which fingers were being raised about the politics behind these decisions. The player said that the FATF is a technical organization that assesses on the basis of prescribed aspects. The decision to retain Pakistan in the gray list has been taken unanimously. However, the FATF encourages Pakistan to record progress on all points.
Pakistan has been on the FATF gray list since 2018 where the economic system of any country has to show a report card of its improvement after assessment on the issue of terror financing and money laundering. Otherwise, it is difficult for him to get facilities from the international financial system.
In June 2018, Pakistan made a high-level promise to the FATF to implement reforms of concerted action against money laundering and economic logistics of terrorism. However, in the 2018 action plan, Pakistan has failed to show evidence of action against terrorists like Hafiz Saeed, Masood Azhar, who are still in the UN list. At the same time, in 2019, the Asia Pacific Group had assessed and asked Pakistan to show action on some more reforms related to money laundering in June 2021.
Under these, the need has been expressed to Pakistan to make necessary legal reforms to stop the financing network of terrorism. On the basis of the same investigation and action, proposals to add new terrorists to the UN sanctions list have also been expected. Apart from this, India-Pakistan has also been asked to increase more surveillance on identified non-banking financial business and professions.
Pakistan’s continued presence in the FATF gray-list for the past three years is increasing the economic difficulties of Pakistan. Its effect is visible in the form of rising inflation in Pakistan as well as difficulties in getting money from the International Monetary Fund.