Going grey: on Pakistan and the FATF watch list

Going grey: on Pakistan and the FATF watch list

Context:

• The Financial Action Task Force (FATF) that monitors countries on action taken against terror-financing and money-laundering has decided to place Pakistan back on its watch list, or “greylist”, from June, 2018.

Why the decision has been taken?

• The decision is both appropriate and overdue.
• The decision comes at the time of Pakistan’s blatant violation of its obligations to crack down on groups banned by the Security Council 1267 sanctions committee that monitors groups affiliated to the Taliban such as the Lashkar-e-Taiba, Jaish-e-Mohammed and the Haqqani network.
• Their leaders like Hafiz Saeed and Masood Azhar continue to hold public rallies and freely garner support and donations.
• In the process, both the LeT and JeM, which continue to praise and claim credit for terror attacks in India, have grown their bases in Pakistan, with fortress-like headquarters in Muridke and Bahawalpur.
• By doing this, successive Pakistani governments have jeopardised ties with India, and shown disregard for the outcry against terrorism worldwide.

Conclusion:

• If greylisting comes as part of a concerted campaign to hold Pakistan accountable, and pressure is ratcheted up with financial strictures on its banks and businesses and targeted sanctions imposed against specific law enforcement and intelligence officials, it may bear fruit.