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- India has rejected Pakistan’s allegation that it had tried to politicise deliberations at the Financial Action Task Force(FATF) which concluded its plenary with more criticism against Pakistan.
- Recently,FATF had warned Pakistan that the country could be blacklisted unless it fulfils an action plan against UN-designated terrorists operating in Pakistan by October,2019.
- A blacklist entry for Pakistan will mean it could lose potential loans and foreign investment,be shunned by the IMF,the World Bank,the ADB and the EU and also suffer a downgrade by credit rating agencies such as Moody’s,S&P and Fitch.
- India has called Pakistan’s statement on politicisation as a way to deflect attention and evade scrutiny of Pakistan’s poor compliance against Money Laundering and Combating the Financing of Terror(AML/CFT).
- In June 2018,the FATF had put Pakistan on the greylist and hand it a 27-point action plan meant to be implemented within 18 months (by September 2019).If it fails to fulfil its FATF commitments,it could face the next steps or being moved to the blacklist.
- India said that Pakistan instead of moving seriously on the action plan such as shutting down support for groups such as the Lashkar and Jaish-e-Mohammad,Pakistan’s leadership has been trying to influence FATF member countries for support.
- Further,India has been publicly pushing for Pakistan to be placed on the blacklist alongside Iran and North Korea for its failure to show credible, verifiable,irreversible and sustainable measures against terror groups operating within its territory.
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