Pakistan has once again been given a stern warning during the fourth plenary meeting of FATF held in Paris. Elisa de Anda Madrazo, chair of the Financial Action Task Force (FATF), said being off the gray list does not mean being “bulletproof” against terror financing.
Paris: Global terror funding watchdog Financial Action Task Force (FATF) has once again given a strict warning to Pakistan. FATF President Elisa de Anda Madrazo said Pakistan’s removal from the gray list does not mean that it has become “safe” from money laundering or terror funding. He clearly said that every country, whether in the FATF list or outside, can never be completely safe from the financial activities of criminals and terrorists.
Is coming out of the gray list an escape from FATF monitoring?
FATF chief Alyssa Madrazo said during a press conference in Paris that Pakistan may have been removed from the FATF gray list in October 2022, but it is still under strict surveillance. “Removing from the gray list does not mean that a country is now completely safe from the funding of criminals or terrorists. Therefore, all countries should continue to enforce their anti-money laundering and anti-terror financing measures,” he said.
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Why is FATF’s follow-up continuing on Pakistan?
Pakistan is not a member of FATF, hence the work of keeping an eye on it is being done by Asia Pacific Group (APG). This institution ensures whether Pakistan is properly implementing its anti-terror laws and financial tracking system.
In fact, Pakistan was put in the gray list of FATF in 2018 because it was found to have serious shortcomings in curbing terror funding. FATF pulled it out in 2022, but with the condition that “reforms will continue to be monitored.”
Why is FATF worried about digital funding of Jaish-e-Mohammed?
Recently reports came that Jaish-e-Mohammed (JeM), a terrorist organization operating in Pakistan, is funding its terror camps through digital wallets and online transactions. These news have increased the concern of FATF.
India’s National Risk Assessment Report 2022 has also described Pakistan as a “high-risk source of terror financing”. The report said Pakistan continues to be involved in state-sponsored terrorism and proliferation financing.
What happened in the FATF meeting?
The Fourth Plenary Meeting of the FATF was held in Paris, chaired by Elisa Madrazo. Representatives from more than 200 countries participated in it. New strategies to stop illegal finance, crack down on terrorist funding and combat money laundering were discussed in the meeting. FATF also clarified that no country in the world should have the illusion that ending surveillance means ending the threat.
Will FATF warning increase pressure on Pakistan?
- FATF’s latest statement is a clear message to Pakistan that the international community will no longer show laxity in matters of terror financing.
- Coming out of the gray list is definitely a relief, but not a guarantee of safety.
- Pakistan still has a lot of work to do in its financial system, banking surveillance and cracking down on terror networks.