FATF continue Pakistan in Grey List
In a setback for Pakistan, the global terror financing watchdog Financial Action Task Force (FATF) has decided to keep Pakistan in the Grey List’ for terror financing. The decision has been taken as Pakistan has failed to check flow of money to terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).
The decision was taken at the Financial Action Task Force’s third and final plenary held virtually due to the COVID-19 pandemic. The plenary was held under the Chinese Presidency of Xiangmin Liu. Now, Pakistan will continue to remain in the Grey List till FATF’s next meeting to be held in October. Now, it will be difficult for Pakistan to get financial aid from the IMF, World Bank, ADB and the European Union, thus further enhancing problems for the nation which is in a precarious financial situation.
If Pakistan fails to comply with the FATF directive by October, there is every possibility that the global body may put the country in the ‘Black List’ along with North Korea and Iran. A strong Indian delegation with experts on money laundering and terror financing participated in the half-day FATF plenary.
India has been maintaining that Pakistan extends regular support to terror groups like LeT, JeM and Hizbul Mujahideen, whose prime target is India, and has urged FATF to take action against Islamabad. The FATF currently has 39 members including two regional organizations — the European Commission and Gulf Cooperation Council.