The Financial Action Task Force (FATF) said that Pakistan has failed to implement 25 out of 27 points to curb terror financial within its borders. The FATF asked Pakistan about its progress in combat financing by terror groups into schools, madrasas, hospitals, and clinics.
Pakistan has been unable to complete 25 of its 27 action points. It has one last chance, till its 15-month deadline ends in October 2019, when the FATF plenary will be held, said an official, according to NDTV.
The FATF is referring to the 27-point plan that it gave Pakistan to combat the financing efforts of terrorist groups like JeM and LeT and its fronts like JuD and FIF.
The FATF is a 35-member inter-governmental body established in 1989 to tackle money laundering, terror financing, and other similar threats. The FATF Plenary, the decision making body, meets three times a year.
The European Union and the Gulf Cooperation Council are also members of the council.
Pak under microscope for terror
In 2017, the FATF gave Pakistan a 27-point plan to check terror financing by the Jaish-e-Mohammad (JeM) and Lakshar-e-Taiba (LeT) and their associates such as Jamat-ud-Dawah (JuD) and Falah-e-Insaniat Foundation (FIF).
It also placed the country on a grey list after four years and gave an October 2019 deadline to implement the recommended changes.
In 2018, Business Standard reports that Pakistani interim Finance Minister Dr. Shamshad Akhtar underscored Islamabads commitment on cracking down on both active and banned terror outfits. Dr. Akhtar added that Pakistan will make stricter laws to restrict finances.
That same year, the Securities and Exchange Commission of Pakistan (SECP) issued the Anti Money Laundering and Countering Financing of Terrorism Regulations. Pakistans provinces have even allocated funds in the millions for anti-terror activities.
Moreover, although some terrorists from LeT, JeM, JuD and FIF have been arrested, they have been booked under the Maintenance of Public Order (MPO) Act not the Anti-Terrorism Act.
Under the MPO Act, people can only be held for a maximum 60 days and does not prosecute for terrorism. So Pakistan is being seen as taking a shortcut or exploiting a loophole.
Pakistan has been on the defensive since February, after a JeM suicide bomber attacked a convoy of Central Reserve Police Force (CRPF) soldiers and killed 40. In retaliation, India crossed the Line of Control and ordered its air force to carry out airstrikes in Balakot.
Even after the Balakot strikes, tensions between India and Pakistan persisted; so much so that the BJPs foundational election rhetoric was a hardline against Pakistani-based terror.
The LeT has also carried out the 2008 bombings in Mumbai, one of the deadliest terrorist attacks that killed 166 people, and the hijacking of an Indian Airlines plane in 1999.
India insists on action against Pakistan-based terrorists
Before 2019, India made two attempts to blacklist Azhar in the UNSC Sanctions Committee. If blacklisted, JeM would be subject to trade and weapons embargos, travel bans, and asset seizures. Pakistan would also need to keep a check on JeMs activities.
The FATF also asks for those same measures to be taken.
After the terrorist attack in Pulwama, India renewed its efforts to blacklist Azhar. After China put the proposal on technical hold, the proposal was stalled and the international community wondered if China would block the ibg entirely.
However, China eventually allowed the listing to pass through. Pakistan also did not object to it. Azhars listing was considered a huge diplomatic success for India, especially because it was the countrys third bid in the UNSC.
India has also called for the FATF to move Pakistan from the greylist to a blacklist for failing to take action against terror. India even supplied new information on Pakistan-based terror groups to the FATF.
In May, Arun Jaitley said, We want Pakistan downgraded on the FATF list, according to Reuters. He added that India will be making a formal request to the FATF, as well.
While the FATF has the ability to recommend actions, it cannot impose any sanctions. Hence, it is up to Pakistan to implement the FATFs plan, crackdown on money laundering, and other illegal trades that fuel terrorism within its borders.
However, if it continues to downgrade and even blacklist Pakistan, other institutions like the World Bank and the International Monetary Fund will perceive it to be unreliable and create financial hurdles in terms of lines of credit and loans. This is bad news for a country on the brink of an economic crisis, even as it grapples with several other socio-political issues.
Rhea Arora is a Staff Writer at Qrius