New Delhi: With Pakistan getting the all clear on 14 out of 27 action plans by the FATF at a recent review meet, chances of it escaping the blacklist are bright as geopolitical considerations and some clever diplomatic moves by Islamabad might make things easier at February’s FATF plenary in Paris. Sources at the meeting of the Asia-Pacific Group which wrapped up in Beijing last week said it was left to India to ask tough questions of Pakistan on its compliance of Financial Action Task Force (FATF) regulations. The four initial sponsors for Pakistan’s greylisting - the US, UK, Germany and France - had been more demanding earlier. According to sources, there is a definite softening of the western position on Pakistan. China has pushed to get Pakistan off the hook at FATF and will continue to make efforts in the next meeting.
However, French diplomatic sources, when questioned about a possible softening of stance, said, “France is determined to continue combating money laundering and terror financing, and on this occasion, will objectively evaluate, without any concession, Pakistan’s actions.” They said the meeting in Beijing “analysed Pakistan’s situation from a technical point of view.” Report on actions undertaken by Pakistan for implementing its plan of action will be presented in February, during the FATF plenary meeting in Paris. However, other sources suggested the US and the EU had moved quite a distance to accommodate Pakistan, even being critical of India’s repeated questioning of Islamabad’s compliance record.
The current desire to give Pakistan a reprieve may have its roots in the ongoing peace process in Afghanistan. The US needs Pakistan to deliver the Taliban on the peace deal, which would allow Donald Trump to bring back US troops from Afghanistan before the elections scheduled for November. The Pakistani foreign minister was in the US requesting assistance with the FATF - that quid pro quo may be in play. According to media reports from Pakistan, it would need an extra 12 votes to stay out of the grey list and in the white list.
Pakistan has submitted a 650-page review report to the FATF on January 8. The report was submitted in response to 150 questions raised by the FATF regarding new Pakistani policies on money laundering. The report outlined the steps taken by Pakistan between October 2019 to January 2020 to implement the group’s recommendations. Foreign Minister Shah Mehmood Qureshi at a media briefing in Washington said that Pakistan hoped the US would back its efforts to get it off the list at the FATF’s Beijing meeting.
