Actions fail to speak louder than words? Know why Pakistan continues to be in FATF Grey List despite lobbying

New Delhi, February 20: The members of Financial Action Tasks Force except Turkey on Wednesday decided to keep Pakistan grey list aligning to its failed commitments to take action against terror financing. This is after the global terror financing watchdog held a review meeting on whether Pakistan had taken sufficient steps and implemented its plan of action to fight terrorism.

 

Sending a stern message to the Islamic country to complete its commitments on action against terror financing before June this year, even Pakistan's all weather friend China and Saudi Arabia have joined hands with India, US and European countries in this move.

 

 

However in the meeting, Turkey and Malaysia supported Pakistan. The country submitted a report on action taken by it based on the FATF's guidelines to curb terror financing in the Paris meeting of the International Co-operation Review Group (ICRG), a part of the global watchdog.

 

More than 800 representatives from 205 countries and jurisdictions around the world including the IMF, UN, World Bank, and other organisations, took part in the meeting. The FATF had in 2018 placed Pakistan on the grey list and had asked it to comply with 27 points related to anti-money laundering and counter-terrorist financing actions. The watchdog had also already granted Islamabad an extension till February 2020 during a meeting in October last year.

 

 

The FATF's Asia-Pacific Group's meeting, which took place in Beijing in October 2018, analysed Pakistan's situation from a technical point of view. China, Pakistan's all weather ally, who took over as the chair of the inter-governmental organisation since July 2019, had expressed satisfaction over the visible progress made by Islamabad, leading to speculations that it could be put in a white list from grey list.

 

The body had warned that Islamabad would be put on the blacklist if it did not comply with the remaining 22 out of 27 points to curb terror financing. Pakistan has claimed that there were 16 United Nations (UN) designated terrorists in Pakistan, of which seven are dead. Out of the nine who are alive, seven had applied to the UN for exemption from financial and travel restrictions.

 

 

Pakistan needs 12 out of 39 votes to exit the 'Grey List' and move to 'White List'. To avoid 'Black List', it needs support of three countries. In last month's FATF meeting in Beijing, the country has got the support of Malaysia and Turkey besides FATF current chair, China. In the Beijing meeting, Pakistan provided a list of its action taken to comply with FATF directions.

 

The terror land was placed on the 'Grey List' by the FATF in June, 2018 and was given a plan of action to complete it by October 2019 or face the risk of being placed on the 'Black List' along with Iran and North Korea. If Pakistan continues with the 'Grey List', it will be difficult for the country 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.