Islamabad: The Financial Action Task Force (FATF) maintained that it has kept Pakistan in its Grey List till February 2020 and directed it to take extra measures for the complete elimination of terror financing and money laundering, say reports. Earlier, FATF placed Pakistan on the 'Grey' list in June 2018 and gave the country 15 months to complete implementation of a 27-point action plan.
"The FATF strongly urges Pakistan to swiftly complete its full action plan by February 2020," it said in a statement. "Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary, the FATF will take action." The Paris-based global finance watchdog, which tackles money laundering, said it was concerned that Pakistan had failed to complete the action plan first by a January deadline, then a May deadline and now October.
Though Pakistani media claim that FATF had "expressed satisfaction" over the steps taken by Islamabad in compliance on measures to tackle terrorism funding and money laundering, sources state the road for Pakistan would not be that easy. Ahead of the meeting, the watchdog's Asia Pacific Group on Money Laundering (APG) issued a critical report on progress made by Islamabad since last year. Of the 40 recommendations, the report said, Pakistan fully complied with only one, largely complied with nine, partially complied with 26, and totally missed four parameters, which were mandatory if Islamabad wanted to be removed from the grey list.
It said Pakistan should adequately identify, assess and understand risks associated with militant groups operating in Pakistan such as Islamic State group, al-Qaeda, Jamat-ud-Dawa (JuD), Lashkar-e-Taiba and Jaish-e-Mohammad (JeM), which continue to raise funds openly. Islamabad says it has seized the groups' assets and put the militants on trials, like the entire leadership of the JuD, including its chief Hafiz Saeed, the alleged mastermind of the 2008 Mumbai attacks in India, which killed 166 people.
Pakistan, struggling with a balance of payments crisis that has forced it to turn to the International Monetary Fund for help, has promised a series of measures to crack down on terrorism financing. But it still faces considerable scepticism over whether the announcements have been followed by effective action to curb militant groups that operate from its territory. "Pakistan needs to do more and it needs to do it faster," FATF President Xiangmin Liu told reporters in Paris. This year, China holds the presidency of the FATF. Besides China, Turkey and Malaysia have also backed Pakistan. Prior to the FATF decision, Pakistani officials said they were confident Islamabad would not be placed on the blacklist. But relief will be temporary with the February deadline looming over the horizon.
Considering the difference between grey, dark grey and black list, FATF states that the term 'Dark Grey' is used to issue a strong warning so that the concerned country gets one final chance to improve. While 'Dark Grey' means warming up for the final phase, i.e. 'Black' list -- means the country concerned is "non-cooperative" in the global fight against money laundering and terrorist financing.
