Pakistan escapes FATF blacklisting

Tribune News Service
New Delhi, February 22

India has claimed a major diplomatic triumph even as China has sought to dissociate itself from a UNSC resolution that named JeM for the Pulwama terror attack.

At another forum, the Financial Action Task Force (FATF), China was neither able to stop Pakistan’s listing as a country where the risk of money laundering and terrorist financing is very high, nor could it prevent the naming of terror organisations led by Masood Azhar and Hafiz Saeed.

Under UNSC rules, the operative part of its resolution states the opinion or the action to be taken. China has taken the view that the mentioning of JeM is just an opinion. In an effort to placate Islamabad, China asked India to accept the offer for investigation.

But India’s Permanent Representative in the UN Syed Akbaruddin said this resolution had many firsts, an indication that India will try to bring it to its logical end — the naming of Azhar as an international terrorist. The MEA has suggested that India propelled the UNSC resolution past China due to support from other members. 

Meanwhile, Pakistan escaped blacklisting at the meeting of the FATF, which still found serious deficiencies in its handling of money laundering and terror financing networks. It was forced to comment that “Pakistan does not demonstrate a proper understanding of the terror financing risks” posed by a host of terror organisations operating in the region.

FATF has mentioned Pakistan for serious misdemeanour 25 times in the last 30 years. India, under the ongoing US presidency of the FATF, aims to get Pakistan blacklisted in order to derail its financial bailout talks with the IMF. India’s opportunity will come at the FATF’s next plenary in June.

FATF also lists India but among a much larger group of countries that may pose a risk of money laundering, but not terror financing.

The FATF acknowledged Pakistan for improving its anti-money laundering and counter-terrorist financing regime. But the appreciation was outweighed by a list of 10 measures that Pakistan needs to urgently overhaul.

The FATF condemned the Pulwama attack along with terrorist outrages in Afghanistan, Nigeria, Kenya, Indonesia, Turkey and Europe. However, its focus is on terrorist organisations posing a danger to the US and the European mainland.

About task force

• FATF seeks to identify, cut off financial flows to terrorists
• Believes weakened networks and infrastructure incapacitate terrorists
• Nearly two-thirds of assessed countries still not taking effective action
• Next FATF meeting in June can cut off IMF bailout for Pakistan

It’s a first: india
@ A statement (China codemning Pulwama and naming JeM) with many firsts. In complex diplomatic situations, it is better to be late than never. — Syed Akabruddin, un representative