Pakistan remains on FATF’s ‘grey list’

admin November 10, 2021
Updated 2021/11/10 at 1:25 PM

On October 21, the Financial Action Task Force (FATF) placed Pakistan back on the ‘greylist,’ stating that it needed to show that investigations and prosecutions were being pursued against senior leadership of U.N.-designated terror groups such as Lashkar-e-Taiba, Jaish-e-Mohammed, al-Qaeda, and the Taliban.

FATF President Marcus Pleyer said during a news conference that Pakistan was still being closely monitored.

“The Pakistani government is running two action plans at the same time, with a total of 34 action plan elements. Thirty of the issues have been addressed, or at least in part. After the FATF’s regional partner APG, or Asia Pacific Group, identified a number of major difficulties, it produced its most current action plan in June this year, which mostly focused on money laundering shortcomings,” said Dr. Pleyer.

Dr. Pleyer said that while Pakistan was making good progress on the new action plan, four of the seven items had been addressed or largely addressed, Pakistan was still assessed to have largely addressed 26 of the 27 items in the previous action plan, which focused on terrorist financing issues and dated back to June 2018.

Following the completion of the Plenary session, the FATF announced the ‘greylisting’ of Jordan, Mali, and Turkey.

The FATF had retained Pakistan on its list of “jurisdictions under heightened surveillance” at the last Plenary in June due to its inability to prosecute key operators of Security Council-designated terror organisations.

“The FATF acknowledges Pakistan’s progress and efforts to address these CFT [Combating the Financing of Terrorism] action plan items, noting that Pakistan has made progress on two of the three remaining action items on demonstrating that effective, proportionate, and dissuasive sanctions are imposed for TF [Terrorist Financing] convictions and that Pakistan’s targeted financial sanctions regime was being used effectively to target terrorist assailants since February 2021.”

The FATF had requested Pakistan to act on the last suggestion by proving that investigations and prosecutions into terror funding targeted top leaders and commanders of UN-designated terrorist organisations.

It had recommended that Pakistan keep working to fix its six strategically essential flaws, which included improving international collaboration by modifying the money-laundering statute and establishing that other countries were being solicited for help in executing UNSCR 1373 designations.

The United States, a major FATF member, voiced grave alarm earlier this year at the acquittal of individuals accused of kidnapping and murdering journalist Daniel Pearl in 2002. Since June 2018, Pakistan has been on the greylist.


Source: The Hindu

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