Pakistan prone to exit FATF’s terror funding ‘grey list’ | Exclusive
3 min readPakistan is likely to exit the Financial Action Task Force (FATF) ‘grey list’ after clearing all 34 motion factors, however might be moved to common comply with up, say sources.
New Delhi,UPDATED: Oct 15, 2022 07:07 IST
Highly positioned sources have informed India Today that Pakistan is compliant on all 34 factors within the FATF motion plan set out by the worldwide monetary watchdog.
By Geeta Mohan: Pakistan is prone to be off the ‘grey list’ of the Financial Action Task Force (FATF), when it meets in Paris from October 18 to 21. Highly positioned sources have informed India Today that it’s compliant on all 34 factors within the FATF motion plan set out by the worldwide monetary watchdog, of which 27-point motion plan was associated to terror financing and 7-point motion plan was to do with cash laundering.
A 15-member group of the FATF concluded a five-day onsite go to to Pakistan from August 29 to September 2, and met officers involved in regards to the monetary system of Pakistan, together with the FIA, FBR, the state financial institution, finance ministry, overseas workplace and different involved establishments, and ready an onsite report on Pakistan.
The findings of the group, which included representatives from the UK, the US, Germany, France, Australia, EU, Asia Pacific Group (APG) and others, will probably be submitted and mentioned through the plenary session.
The Pakistan delegation will probably be headed by Minister of State for Foreign Affairs, Hina Rabbani Khar.
Officials aware of the proceedings are pretty positive that they are going to be off the checklist. However, there’s a small chance of delay to February if sure nations make a powerful case about considerations relating to money couriers (hawala), cash laundering, which continues within the nation.
However, ought to Pakistan get off the ‘grey list’ it should nonetheless not be a clean trip for Islamabad since sources say they might be moved to ‘Regular Follow-Up’ (RFU) which might require Pakistan to present common updates to the FATF even when they aren’t on the ‘Enhanced Monitoring List’ or the ‘grey list’.
According to the FATF web site, a follow-up course of is in place “to focus on countries which do not make sufficient progress in addressing their risks and deficiencies, and to exert pressure on such countries to improve their performance.”
FOLLOW-UP PROCESS
The FATF and FSRBs’ follow-up procedures ought to embody two forms of course of:
Regular follow-up because the default monitoring mechanism, based mostly on a system of normal reporting.
Enhanced follow-up, involving a extra intensive means of follow-up, for nations with vital deficiencies, or nations making inadequate progress. In deciding whether or not to put a rustic in enhanced follow-up, the Plenary ought to contemplate each the extent of technical compliance and of effectiveness reached by a rustic.
(Source: FATF web site)
Pakistan was on the FATF ‘black list’ from 2009-2012 after which was moved to the ‘grey list’ from 2012-2015. In 2015, after they had been getting off the ‘grey list’, they had been placed on ‘Regular follow-up’ from 2015-2018.
Similarly, they’ve been on the gray checklist’ from 2018-2022 and if the choice to take them off the checklist is made, they might be moved to RFU but once more, says supply.
PAK FATF BACKGROUND:
2009-2012 – Black List
2012-2015 – Grey List
2015-2018 – RFU
2018-2022 – Grey List
2022- RFU
With hardly any motion on Pak-based terror networks and terrorists that focus on India, New Delhi will make all efforts to make sure Pakistan’s monitoring continues. A senior intel officer has mentioned, “We are already noting Pak action wrt training camps and increase in number of terrorists across the LOC.”
“We are collecting evidence to be presented to FATF in 2024 to show how they continue to abet terrorism and that the State is a terrorist inspirer,” mentioned the officer.
