Pakistan put on terror-financing watchdog FATF’s ‘grey list’
New Delhi: In a major decision, the Financial Action Task Force has decided to place Pakistan on the grey list. Pakistan has been directed to submit intense financial scrutiny on terror financing.
The decision was taken by the FATF to put Pakistan on the grey list in a late night development. The decision came after China and Saudi Arabia withdrew their earlier objections.
The decision is an interesting one considering that Pakistan had claimed that it had been given a three month reprieve.
Earlier China, Turkey and Saudi Arabia joined hands to block a move by the US to place Islamabad on the terror financing watch list. The US was working behind the scenes during the ongoing Paris meeting of the Financial Action Task Force (FATF) so as to take action against the country which it believes has not acted against terrorist financing and the implementation of the UN Security Council resolutions.
The FATF, a global body that combats terrorist financing and money laundering, met in Paris amid reports that the US with support of some European allies was trying to place Pakistan on a list of countries that financially support terrorism.
The US says Pakistan is not taking action against terror groups like the Haqqani network and the Taliban. Islamabad has denied those allegations.
Pakistan being added to the “list of countries deemed ‘high risk’ for doing too little to curb terror financing,” would have a financial implication for the country.
As a result of this inclusion, banks, other lenders and international companies seeking to do business with Pakistan could rethink financial ties, putting a damper on its already struggling economy.
Yesterday, US state department spokesperson Heather Nauert said the FATF is expected to take a decision by today on adding Pakistan to the ‘grey list’ of countries not doing enough to comply with terrorist-funding regulations.