No change- FATF decision on Pakistan

Table of Contents

FATF decision on Pakistan- Relevance for UPSC Exam

GS Paper 2: International Relations-
- Important International institutions, agencies and fora- their structure, mandate
- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

In a repetition of its decisions over the past three years, the Financial Action Task Force (FATF) retained Pakistan on its ‘grey list’ of jurisdictions under increased monitoring.
The FATF also placed Turkey on the grey list and cleared Mauritius from it.
Key Mandate of the FATF: The FATF evaluates countries on efforts to check terror financing and money laundering.

The FATF found that Pakistan had cleared 30 of a total of 34 tasks assigned in two batches, and would face another review in February 2022.
Pakistan had failed to conduct effective investigations and prosecutions the senior leadership of United Nations-designated terror groups.
- For example, Jaish-e-Mohammed (JeM) chief Masood Azhar, Lashkar-e-Toiba (LeT) chief Hafiz Saeed, Dawood Ibrahim and other command and control chiefs of terror groups.
- These terror groups are responsible for the 26/11 Mumbai attacks in 2008, the IC-814 hijacking in 1999 and several major attacks and bombings in Jammu and Kashmir.

No Effect on the Ground: increased monitoring by the FATF of Pakistan — from 2008-2009, 2012-2015, and 2018-2021 — has failed to achieve desired outcomes.
- While some of the terrorists have been tried and convicted for terror financing charges in Pakistani courts, none of them has been effectively prosecuted for violence in India.
Lack of effectiveness of FATF: These much-delayed outcomes speak as much to Pakistan’s lack of credibility on terrorism as to the FATF’s own lack of effectiveness.
Unwillingness to place Pakistan on the Black List: Despite Pakistan’s failure to fulfill FATF’s task list, the FATF is not considering placing Pakistan on the ‘black list’.
Accusing FATF of politicizing’ the process: both from those who would like to see tough action for non-compliance by Pakistan, and from Pakistan itself.
- Pakistan has accused India of turning the technical process into a political one by “targeting” Pakistan.
Concerns over Taliban Takeover of Afghanistan: This may lead to the growth of transnational terror groups such as al-Qaeda, taking advantage of the Taliban takeover to build new safe havens and financing networks.

Effective Implementation: FATF must ensure that the investigation of Pakistan is not an open-ended process, and is brought to a credible and effective conclusion at the earliest.
Taking cognizance of Afghanistan Issue: The FATF must keep its commitment from 2001 (when it added terror financing to its mandate) to prevent all terror groups from accessing various funding networks.