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Synopsis: Pakistan avoided the blacklist in the recent FATF meeting. However, it has to do more, to come out of the grey list of FATF.
Introduction:
The recent Financial Action Task Force (FATF) meeting has once again decided to keep Pakistan in their grey list of countries under “increased monitoring”.
Further, the FATF ruled out the option of placing Pakistan on blacklist like Iran and North Korea. It is because Pakistan made some progress on its commitments to FATF. Further, the FATF also provided a 3-month time limit to Pakistan for fulfilling its remaining commitments.
Pakistan’s progress under FATF grey list:
- Pakistan was removed from the Financial Action Task Force lists in 2015. But in 2018, it was again put on the list. Pakistan was provided with a 27-point action list to fulfill, to come out of the FATF grey list.
- FATF President Marcus Pleyer acknowledged Pakistan’s “significant progress”. However, He further mentioned that Pakistan fulfilled 3 points on the list only partially. Notably, 3 of them in the area of curbing terror financing. The FATF mentions the few important areas of non-compliance such as,
- Demonstrating terror-funding prosecution is accurate, effective, and dissuasive
- Implementing financial sanctions against all terrorists designated by the UN Security Council. This includes LeT founder Hafiz Saeed, JeM chief Masood Azhar and those who belong to al-Qaeda.
India’s relations with Pakistan
Since 2016, political, trade, cultural ties between Pakistan and India are minimal. But recently the recent decision of Directors General of Military Operations (DGMO’s) to strictly observe the ceasefire agreement, is a great first step.
The move indicates more dialogues are possible between both countries. But the success of dialogues also depends upon Pakistan’s compliance with other points in the 27 point action list. Such as
- Successfully prosecuting terrorists and terror financiers.
- Addressing cross-border terror that emanates from Pakistan.
Conclusion
India Pakistan relations may progress by fulfilling Pakistan’s commitment to the FATF action list. Because these actions also address India’s main grievance with Pakistan on State-sponsored terrorism.
