Pakistan was added to Financial Action Task Force (FATF) grey list in 2018 with the allegations of money laundering, facilitation, and financing of terrorist organizations. Pakistan was assigned a target of 27 points to be met by September 2019, which was later extended due to the COVID-19 pandemic.
At the recent session of June 2021, the Asia-Pacific Observer Group (APG) observed that Pakistan had met 26 points out of 27. However, the most crucial point i.e combating terror financing (CFT) against UN-declared terrorist groups Jaish-e-Muhammad and Lashkar-e-Taiba is yet to achieve by Pakistan and the report suggests retaining Pakistan’s current status of being grey-listed. The report also differentiates between the elements of the complaint, the semi-complaint, and the non-complaints, in line with Pakistan’s results.
This month there will be another session to assess the performance of the countries in the Grey List and Black List. Pakistan’s position in the forthcoming FATF report is at risk because of multiple factors. The first is the non-complaint status vis-à-vis the pivotal issue of combating terrorist groups declared by the United Nations because of the non-compliance within state institutions. Nevertheless, another committee has been framed as previous constitutional amendments, but it seems difficult to catch fish in a trap.
The United States, a major strategic player, is already upset that Pakistan is not letting them use Pakistani air bases to regulate the Taliban regime in Afghanistan. US wrath is evident from the recent Anti-Pakistan bill that has been moved in the US senate alleging Pakistan to be a facilitator of the Afghan Taliban and other UN-declared terrorist groups.
France as an observer of FATF can create obstacles in the wake of the Anti-France movement led by Tahreek-e-Labaik Pakistan (TLP). The government’s response to their application in the national Parliament can serve as fuel.
Pakistan was also targeted for not combatting money laundering through the FATF in 2018. Pakistan assured the APG to incorporate the anti-money laundering and terror financing articles in the Constitution, but the recent Pandora leaks with 700 Pakistanis being listed can change the game for Pakistan.
It is noteworthy that countries with higher number of people in Pandora papers are out of FATF watchdog while dragging Pakistan in greylist for the same issues indicates the hypocratic nature of FATF.
Author: Iqra Arif