Pak. faces flak over terror funding: 

Pak. faces flak over terror funding: 

Context

• India raised the issue at the International Cooperation Review Group (ICRG) in Argentina forcing Financial Action Task Force to demand compliance report from Pakistan during the next session in February 2018

What is ICRG?

• International Co-operation Review Group (ICRG) analyses high-risk jurisdictions and recommended specific action to address the ML/FT risks emanating from them.
• The FATF’s primary role is to set global AML/CFT standards and ensure the effective implementation of these standards in all jurisdictions
• The FATF took the additional step of calling upon its members and urging all jurisdictions to apply counter-measures to protect their financial sectors from money laundering and terrorist financing risks emanating from them.

What is Financial Action Force?

• The Financial Action Task Force (FATF) is an intergovernmental body established in 1989 by the Ministers of its Member jurisdictions.  
• The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.  
• The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

What happened?

• India scored a major victory at the Financial Action Task Force that looks into terror financing that held its plenary in Buenos Aires this week.
• Pakistan has been asked to report on action taken against designated terror groups such as the Lashkar-e-Taiba and its off-shoots Jamaat-ud Dawa and Falah-i-Insaniyat.
• Pakistan’s Central Bank, the State Bank of Pakistan (SBP), has been asked specifically to report on its work in shutting off the finances to the groups.
• India had raised the funding of the groups and leaders like 26/11 mastermind Hafiz Saeed, who openly addressed rallies and raised funds in Pakistan as well as LeT commander Zaki-Ur Rahman Lakhvi