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  • Saturday, 25 June 2022
History of Pakistan’s FATF

History of Pakistan’s FATF

History of Pakistan’s FATF

The global watchdog of money laundering or terrorist financing is called the financial action taskforce. This meeting is a landmark in the history world’s most powerful financial system. It will determine the future of Pakistan and help keep the global economy stable. Many Pakistanis are opposed to the organization and consider themselves victims of terrorism. According to the Institute for Economics and Peace Pakistan ranks fifth on the list of countries with the most terrorists, after Nigeria, Afghanistan, and Iraq. Many believe that the list does not accurately reflect Pakistan’s political or social situation.

The public statement first listed Pakistan in its report, and noted that it had made progress in implementing anti-money laundering legislation. However, the group warned financial institutions that Pakistan’s remaining shortcomings could make it more vulnerable in the global financial system. In June 2010, the country made a high-level commitment to resolve its differences, and move off the grey list. Despite significant progress being made, the country still remains on the gray list as of Oct 2011.

The FATF’s recent grey list did not change the country’s status. India and Saudi Arabia both publicly congratulated China for the election of the FATF vice president. These moves didn’t change the US as the two nations are unable agree on anything. In September 2011, India’s foreign ministry declared that India would “blacklist Pakistan whenever”. This comment was immediately taken up by Pakistan’s foreign ministry and other leaders. The decision to add Pakistan to the grey list was politically driven and did nothing to reflect the current situation.

The FATF mentioned Pakistan for the first time in its February 2008 report. While the group was happy with Pakistan’s recent gains, it asked financial institutions to be vigilant for any deficiencies in anti money laundering laws or curbs against terrorist funding. Nevertheless, in June 2010 Pakistan received a high-level commitment to resolve its differences with the group and was given a reprieve until February 2020.

The FATF placed Pakistan on its “grey list” in 2012 and has kept it there since. The country was put on the grey list due to a lack of cooperation with the organization. In June 2018, Pakistan was again on the gray list. According to the FATF, Pakistan was not following their guidelines and was in violation of the rules. India was also actively trying to place India on the blacklist following Hafiz Saeed’s conviction.

Because Pakistan has not adhered to the treaty obligations, the FATF has placed Pakistan in its grey list. The US-led move to place Pakistan on the grey list in three months has been a ploy to pressure Pakistan into compliance. The US’s lackof political will has prevented Pakistan from doing so in its past. This is why FATF is not a positive sign. It’s an instrument of political power that should be used with caution.

The FATF is a long-standing blacklister of countries. The US is the current president of this organization. The US has supported Pakistani efforts towards being added to the blacklist. Both countries have been on this list in the past. It is not unusual for the US to add a country on the blacklist due to its stance against terrorism. But it’s important that we remember that the past has been full of ups and also downs.

In February 2008, Pakistan was the first country mentioned by FATF in a public statement. Pakistan had not yet implemented an anti-terrorism comprehensive law. In a public statement the FATF highlighted progress made by Pakistan and encouraged it to follow its standards. Although the list remained on its graylist until October 2011, Pakistan was able remove itself from the greylist in 2012.

In its February 2008 mutual evaluation report, the FATF first mentioned Pakistan. However, this time, Pakistan was not on the blacklist. The country received critical feedback from the group during its review of its anti-terrorism legislation. The country actually met all of their obligations until November 2015. It was required that the members wait until January 2012 before removing Pakistan from the list. Although it is not clear exactly what happened, the two countries knew that the decision had been made because of political pressure.

 

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