By Sant Kumar Sharma

Jammu, October 22

 

 

As predicted by most experts, within Pakistan itself and globally, Pakistan will continue to be on the grey list of Financial Action Task Force (FATF). An announcement to this effect was made by the FATF chief in Paris late on Thursday evening. “Pakistan remains under increased monitoring (grey list). The Pakistan government has two concurrent action plans, with a total of 34 action plan items. It has now addressed or largely addressed 30 of the items,” FATF president Marcus Pleyer said.

 

Turkey has also been put on surveillance and said there are serious offences remaining regarding the nation’s control over financial operations, according to a news agency. During the day, there was speculation that Turkey was also being put on grey list.

 

Pakistan has been asked by FATF to demonstrate ‘an increase in investigations and prosecutions' and to ensure that 'proceeds of crime continue to be restrained and confiscated in line with its risk profile, including working with foreign counterparts to trace, freeze, and confiscate assets.’Today’s development means Pakistan will remain on grey list for the next six months as the FATF plenary is due in April 2022 only. The Financial Action Task Force (FATF) had scrutinised the compliance report submitted by Pakistan. The report dealt with two action plans and a total of eight points which the FATF had suggested.

 

Pakistan has been repeatedly asked to plug gaps in its laws dealing with terror financing and money laundering. However, whatever steps it has taken half-heartedly, the changes have failed to bring many UN designated terrorists to book. It is home to dozens of UN designated terrorists, including those belonging to the Haqqani network based in Quetta. Sirajuddin Haqqani of this clan has become the most powerful UN designated terrorist, in a way, as it is now the internal minister of Afghanistan.

 

 

The FATF’s plenary meeting in Paris was held for three days on October 19 20 and 21. It said that Pakistan was being kept on the grey list despite making progress on certain points because what it did was not enough.

 

“Despite making progress on new action plans having seven points, the FATF has not conducted onsite visit, so the possibility of exclusion from the grey list is out of the question,” top Pakistani officials had said in Islamabad ahead of the formal announcement on Wednesday. They said they expected the plenary ``to accept a few points and declare compliant or largely compliant on a few of them”.

 

Pakistan has been on grey list since mid-2018 and it was given a list of 27 points on which to act. On the last point of the first action plan, Pakistan was asked to show progress on the prosecution against UN-designated outfits and their affiliated associates. This is one major point on which the FATF has showed its dis-satisfaction repeatedly.

 

The FATF plenary held three months ago had kept Pakistan on the grey list and simultaneously handed over another action plan comprising a total of seven points to implement them in order to avoid falling into the blacklist.

 

So far, China, Turkey and Malaysia have helped Pakistan in avoiding getting blacklisted which could cause more severe economic problems for it. It is already facing problems in getting funds (loans) from global financial institutions like International Monetary Fund with which it is holding discussions presently. The FATF action has also adversely affected its borrowings from the World Bank and Asian Development Fund (ADB).

 

Before August 15, when the Taliban overtook Kabul, the US was generous with its monetary help of Pakistan. That is one source of grants which is likely to dry up in the coming days as the US sees it leaning towards China. Whatever funds were provided to Pakistan by the US for fighting terrorism, it seems those were utilised in strengthening and arming terror groups.

 

After the August 15 setback in Kabul, which had led to a global loss of face for the US, and its allies, it is likely that Pakistan is likely to be given less weightage in the coming weeks and months. Besides, Pakistan’s overt backing of the Taliban will also work against it. As such, it is possible that watchdog bodies like FATF and its affiliates may harden their stance towards Pakistan.