Global pressure piles on pakistan

Global pressure piles on pakistan

Hours after a terror strike shook Manhattan on October 31, the need to counter all kinds of terrorism resonated in a meeting room around 8,000 km away in Buenos Aires. Of the eight victims who lost their lives that night, five belonged to Rosario, a city near Buenos Aires, Argentina. Delegations from 37 of the Inter Governmental Financial Action Task Force (FATF) Committee members and 31 observer groups were present to formulate policies and regulatory reforms in countries to strike at the root of terror financing.

Argentina President Mauricio Macri said: “This shows us that there is no place for grey areas in the world today; we all have to be committed from head to toe in the fight against terrorism, which has a lot to do with what you do at your work back home, on a day-to-day basis.”

Established in 1989 following the G7 summit in Paris, the FATF is an independent inter-governmental body seeking to set standards and ‘promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system’. It was pulled out and dusted post 9/11 attacks that changed the way the West viewed terrorism.

The plenary meets every 90 days. It was here that Pakistan and the country’s regulatory banking body, the State Bank of Pakistan, were put in the dock. For the seventh time, Pakistan has been put on a 90-day notice period to explain its behaviour in countering terror financing.

The International Cooperation Review Group (ICRG) of the FATF that assesses Pakistan’s efforts to curb terror financial havens asked tough questions and sought clear answers of its national bank by the next plenary in February 2018.The regulator has been asked to explain why globally proscribed organizations, including Lashkar-e-Toiba, Jaish-e-Mohammad and Falah-i-Insaniyat, are able to use its banking channels under the guise of charity. Sources privy to negotiations said China was the sole voice in the room in support of its all-weather friend and questioned the move. But unlike in the Security Council, Beijing was without a veto here and failed to block the move.

The FATF had sought freezing of assets of all UN-designated entities earlier and an action-taken report has been sought by the plenary to be held in Paris. In case of failing, FATF could consider the next steps involving documentation against Islamabad.

Pakistan remains in denial. In a statement issued on November 6, the ministry of foreign affairs responded: “At the Buenos Aires meeting of FATF, the proceedings in the ICRG of FATF appreciated the continued progress made by Pakistan in implementing FATF standards. Any insinuations made to the contrary are only a reflection of a politically motivated strategy to malign Pakistan.”

Official sources reject this denial arguing that ICRG proceedings are secret. Only those that are on black list and/or counter measures list find mention in public statements. Thus, Islamabad is shielding itself behind the close-door process.