Home / Articles / FTAF fiasco

FTAF fiasco

There were tall claims that Pakistan was unlikely to be placed on the grey list of the global financial watchdog as the country had made enough progress to meet international anti-money laundering and terror financing standards, such euphoric environment had been created before and during the previous FATF plenary meeting as well. There is a need to float realistic expectations before such international events.

The Financial Action Task Force (FATF) has formally placed Pakistan on the grey list due to ‘strategic deficiencies’ in its anti-money laundering and terrorism financing regime. The decision came despite Pakistan had demonstrated reasonable progress in three out of four major areas of FATF concerns.  In prevailing World Order, nothing works better than American pressures. During February plenary, the US and the UK went out of their way to by-pass the standard FATF procedures and jointly arm twist the FATF for nominating Pakistan for the grey list in June, regardless of its February-June period effort and progress; they were also joined by France and Germany. Decision is politically motivated and is part of American strategy to pressurize Pakistan to settle some other scores.

Pakistan has undertaken to work towards effective implementation of the Action Plan, while staying in the grey list. A similar situation took place in 2011 when Pakistan was included in the grey list and was taken out in 2015 after it successfully implemented the Action Plan.

FATF identifies jurisdictions with strategic AML/CFT deficiencies in its two public documents: FATF Public Statement (call for action)– commonly known as black list—and Improving Global AML/CFT Compliance— nick named as grey list. It is an on-going process; these lists are updated three times a year. Interestingly, FATF does not use grey list/blacklist terminologies.

Pakistan has undertaken to demonstrate that authorities are identifying cash couriers and enforcing controls on illicit movement of currency and understanding the risk of cash couriers being used for terrorism financing.

During the intervening period Pakistan government did strenuous hard work to plug the gaps. Ambitious laws were enacted. Finance ministry improved institutional mechanisms for handling anti-money laundering and countering financing terrorism issues. Coordination between the State Bank, Banking institutions and law enforcement agencies had also been strengthened to curb money laundering and terror financing. Pakistan has recently addressed issues raised by the FATF through a tax amnesty scheme, while Securities and Exchange Commission has issued Anti-Money Laundering and Countering Financing of Terrorism Regulations (2018). National Security Committee has also reaffirmed its commitment to cooperate with the FATF.

Through its Action Plan, Pakistan has demonstrated to the world that it was ready to go an extra mile to curb money laundering. Pakistan will have to deliver on the first goal by January next year and complete all the 26 actions by September 2019,” it is indeed a tight schedule. One wonders whether Pakistan has requisite mechanisms in place to implement and steer such an ambitious plan.

Caretaker government would do a great service by forming a national commission to identify and punish all those responsible for letting the things reverse back after Pakistan’s previous journey to blacklist was over. Remember Ayan Ali case? And who protected her? Carrier is enjoying quality life abroad.

About admin

Check Also

http://pakistanfocus.org/wp-admin/post-new.php

New Zealand Massacre: ‘Clash of Civilizations’ thesis Stalks the World!

The horrific massacre in Christchurch, New Zealand on 15th March, Friday 2019 has shaken the World. The killer, Brenton Harrison Tarrant, is an Australian citizen. Nearly 50 People died in the attack as two mosques were attacked. Those killed include nine from India. Tarrant had fixed the camera on his head so as to live stream the massacre. What prompted him to undertake this violence was his ideology which holds that today Europe is facing the threat of Muslim immigration and violence. The Christchurch terrorist was consumed by intense racism and hatred of Muslims. He posted a long statement, “manifesto” on ‘white nationalism’ before undertaking the dastardly act. All over the World there were diverse reactions to this horrific act. New Zealand Prime Minster Jacinda Ardern, who at 38 years of age is also among the youngest heads of government in the world, declared that the victims, many of whom may be migrants or refugees, “are us” and the shooter “is not”. The overriding theme of the Prime Minister’s statements was that her country represents “diversity, compassion and refuge”. “I want to assure people… that all our agencies are responding in the most appropriate way that includes at our borders.” The Pope in a very touching speech said, “In these days, in addition to the pain of wars and conflicts that do not cease to afflict humanity, there have been the victims of the horrible attack against two mosques in Christchurch, New Zealand… I am close to our Muslim brothers and all that community… ”Today we are facing the times where American politics of control over oil wells led to the formations like Al Qaeda and after 9/11 twin tower attacks; US media popularized the phrase Islamic terrorism. What we are witnessing today is the fall out of the policy which has been pursued to control oil wealth. The aftermath of this has been the White Nationalism which has resulted in Islam-Muslim phobia, which needs to be countered ideologically by promoting the inherent global tendency of alliance between diverse cultures. What is noteworthy is that there is strong parallels between Breivik’s manifesto and ideology of Hindu nationalism – or Hindutva – on the question of nature of Islam—Muslims and coexistence with Muslims. Much like European mainstream rightwing parties BJP in India does condemn the violence for name sake but does not condemn the underlying ideology which is based on Islam phobia.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *