Pakistan faces the onerous task of defending its actions to curb terror financing at the plenary meeting of the Financial Action Task Force (FATF) in the US against the backdrop of reports that the country has failed to deliver on a 27-point action plan framed by the multilateral watchdog.
The FATF plenary at Orlando, Florida, which is ending on June 21, is crucial as its findings will determine whether Pakistan will remain on the watchdog’s “grey list” or be downgraded to the “black list”, which would lead to harsher financial sanctions.
During the meeting, FATF members will assess the implementation of the action plan by Pakistan.
However, a final announcement on Pakistan’s status is expected only after the FATF’s next plenary in Paris during October 18-23, people familiar with developments said.
The Orlando plenary will specifically look at developments in the financing of Islamic State, al-Qaeda and affiliates and “countries’ disruption strategies, including prosecution of terrorist financing”, a statement issue by the FATF stated.
Pakistan has aligned its domestic counter-terror and money laundering legislations and regulatory mechanisms with international obligations, especially the need to crack down on individuals and groups listed by the United Nation’s 1267 Sanctions Committee. It has also taken some steps to detain operatives of Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) and their affiliates such as Jamaat-ud-Dawah and Falah-e-Insaniyat Foundation and to restrain the activities of these groups.
However, several reports have suggested that evaluations by the Asia Pacific Group, a regional affiliate of the FATF, have concluded Pakistan hasn’t done enough on the ground to disrupt fund-raising by eight terror groups, including LeT and JeM, and to completely freeze their assets.
{{/usCountry}}However, several reports have suggested that evaluations by the Asia Pacific Group, a regional affiliate of the FATF, have concluded Pakistan hasn’t done enough on the ground to disrupt fund-raising by eight terror groups, including LeT and JeM, and to completely freeze their assets.
{{/usCountry}}Pakistan was placed on the grey list in June last year after a majority of FATF members concluded that the nation wasn’t doing enough to curb terror financing.
A plenary meeting of the watchdog in Paris in February concluded it had made “limited progress” in countering terror financing and failed to show proper understanding of risks posed by eight groups, including LeT, JeM, JuD, FIF, Islamic State, al-Qaeda, Haqqani Network and the Taliban.
The findings of the watchdog’s latest assessment will be known when FATF president Marshall Billingslea, also the US treasury department’s assistant secretary, briefs the media on June 21.