–Indian media report claims FATF has given Pakistan ‘all-clear’ on only two out of 27 action plans given to country
The Financial Action Task Force (FATF) has given Pakistan an “all-clear” on only two out of the 27 action plans it has to complete to get out of the grey list – the warning given to a country when it fails to curb terror funding and money laundering, Times of India reported on Monday.
In the run-up to the FATF plenary in Orlando, Florida from June 16-21, the report stated, Pakistan will, at the very least, remain in the grey list which it went back into in 2018. After the second review meeting in Guangzhou, China, the Asia-Pacific Joint Group – a committee set up by the FATF to monitor Pakistan’s compliance, distinct from the Asia-Pacific Group (APG) – told Islamabad over the weekend that it has to take serious steps to stay off the black list which would mean shutting of all doors to international finance, the report added.
A third review of Pakistan’s compliance will be in September, just before the October plenary. Pakistan was given 15 months to get its act together on a host of issues. It has until October, before FATF decides whether to keep Pakistan on the grey list or blacklist it.
India is pushing for Pakistan to be blacklisted. But the opinion among the others is that by keeping Pakistan in the grey list they can continue to pressure Islamabad as well as scrutinise its actions.
Pakistan is working overtime to avoid the black list. Some are hoping that Pakistan might get a breather with China taking on the presidentship of FATF from October. But that is unlikely to happen, because of the weight of the other members.
So far, Pakistan has seized 800 properties belonging to JUD, FIF, JEM and arrested some of their leaders. FATF has asked Pakistan to explain certain things, like where is the investigation about the source of funds for these bodies.
FATF has asked for more detailed action and reporting on terrorist assets – armouries, weapons, explosives and camps. FATF also has raised the point that Pakistan’s anti-terror laws are not yet in conformity with FATF guidelines.
FATF had objected to an asset declaration amnesty programme that the Nawaz Sharif government rolled out last year. This was repeated by Prime Minister Imran Khan on Monday. FATF has said this scheme is contrary to its anti-money laundering rules which Pakistan has to follow.