The Global anti-terrorism watchdog Financial Action Task Force has decided to retain Pakistan on the “greylist” till the next review of its performance on its recommendations during the June June 2021.
The Financial Action Task Force said that, Pakistan needs to work on implementing following 3 remaining items out of 27 items:
- Pakistan needs to demonstrate the Terror funding investigations and prosecutions targeting the persons & entities acting on behalf of the designated persons or entities.
- Pakistan needs to demonstrate that Terror funding prosecutions results in to Proportionate, effective and dissuasive sanctions.
- Pakistan needs to demonstrate the effective implementation of targeted financial sanctions against all the United Nations security council (UNSC) resolution 1267 and 1373 designated terrorists.
- During the October 2020 Plenary, due to the Coronavirus, Pakistan was given an extension for full compliance with the 27-point action plan till February 2021.
- It had then not fully complied with 6 of the 27 directives.
- The watchdog had issued the 27-point action plan after placing Pakistan on the ‘Grey List’ in June 2018. The action plan pertains to curbing money laundering and terror financing.
- Watchdog acknowledged Pakistan’s significant progress in combating terrorism, however it was still to fully comply with three of the 27-point action plan.
- The three points pertain to effective steps in terms of financial sanctions and penalties against the terror funding infrastructure and the entities involved.
- After assessing the measures taken during the June 2021 session, the Financial Action Task Force would verify the implementation and test the sustainability of reforms undertaken by Pakistan, to review its inclusion or exclusion on the grey list.
- In Pakistan’s case, the Financial Action Task Force has taken cognisance of the inaction against several banned organisations involved in raising funds for terror activities and those linked to global terrorists like Jaish-e-Mohammed chief Masood Azhar and Lashkar-e-Taiba’s Hafiz Saeed and its operations chief Zaki-Ur Rahman Lakhvi.
- On several occasions, India has also raised the involvement of elements within Pakistan in a number of terror cases, including the 26/11 Mumbai and Pulwama attacks.
- Perpetual containment of Pakistan on the grey list of Financial Action Task Force would further pressurise Pakistan to take adequate measures to prevent such terrorist attacks on India from its soil.
UN Security Council resolution 1267
The United Nations Security Council resolution 1267 was adopted on 15th October 1999. Under this resolution, UNSC had designated Osama bin Laden and the associates as terrorists. The UNSC established a sanctions regime in order to cover the individuals and entities who are associated with the Al-Qaida, Osama bin Laden or Taliban.
- The inter-governmental body Financial Action Task Force was established in the year 1989 during the G7 Summit in Paris.
- The Financial Action Task Force assesses the strength of a country’s anti-money laundering and anti-terror financing frameworks, however it does not go by individual cases.
- To set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris, France.
- Member Countries
- Financial Action Task Force currently has 39 members including two regional organisations — the European Commission and Gulf Cooperation Council. India is also a member country.
- Lists under Financial Action Task Force
- The Grey List
- The Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list.
- This inclusion serves as a warning to the country that it may enter the blacklist.
- The Black List
- The Countries known as Non-Cooperative Countries or Territories are put in the blacklist.
- These countries support terror funding and money laundering activities.
- Financial Action Task Force revises the blacklist regularly, adding or deleting entries.
- The Grey List
- Sessions: The Financial Action Task Force Plenary is the decision making body of the FATF. It meets 3-times per year.
Pakistan again to remain on Grey List of FATF Pakistan again to remain on Grey List of FATF