FATF Grey List: Why Pakistan must introspect on its efforts to check terror

Pakistan is unlikely to exit the Financial Action Task Forces (FATF) grey list as it has been unable to comply with six of the 27 points in the global watchdogs action plan, according to reports

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The FATF had given Pakistan a total of 27 action plan obligations for completely checking terror financing of which so far it has cleared 21 but has failed in some of the key tasks. The obligations included action against two of India's most wanted terrorists Maulana Masood Azhar and Hafiz Saeed. Besides, FATF has strongly noted the fact that there was sudden disappearance of the names of more than 4,000 terrorists from its original list of 7,600 under Schedule IV of its Anti Terrorism Act.

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The Paris-based global watchdog is holding its virtual plenary session on October 21-23. It will take the final call on Pakistan's continuation on its grey list after a thorough review of Islamabad's performance in fulfilling the global commitments and standards in the fight against money laundering and terror financing.

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The four nominating countries the United States, Britain, France and Germany are also not satisfied with Islamabad's commitment to taking strong action against the terror groups operating from its soil, reports said.

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Maulana Masood Azhar and Hafiz Saeed are most wanted terrorists in India for their involvement in numerous terrorist acts, including the 26/11 Mumbai terror strikes and the bombing of a CRPF bus at Pulwama in Jammu and Kashmir last year.

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With Pakistan's continuation in the grey list, it is increasingly becoming difficult for Islamabad to get financial aid from the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB) and the European Union, thus further enhancing problems for the neighbouring country which is in a precarious financial situation.

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The FATF plenary was earlier scheduled in June, but Pakistan got an unexpected breather after the global watchdog against financial crimes temporarily postponed all mutual evaluations and follow-up deadlines in the wake of grave health risk due to the Covid-19 pandemic. Pakistan needed 12 votes out of 39 to exit the grey list and move to the white list. To avoid the blacklist, it needs the support of three countries. China, Turkey and Malaysia are its consistent supporters. Currently, North Korea and Iran are on the FATF blacklist. Pakistan was placed on the grey list by the FATF in June 2018 and was given a plan of action to complete it by October 2019. Since then, the country continues to be on that list due to its failure to comply with the FATF mandates.

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The FATF is an inter-governmental body established in 1989 to combat money laundering, terror financing and other related threats to the integrity of the international financial system. The FATF currently has 39 members, including two regional organisations -- the European Commission and Gulf Cooperation Council. India is a member of the FATF consultations and its Asia Pacific Group.