ISLAMABAD: Pakistan is prepared to argue a persuasive case in its defense at the Financial Action Task Force (FATF) joint plenary in Paris this week to avoid inclusion on the international financial watchdog’s grey list of “jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies.”
The six-day plenary week began on June 24 with “delegates from the 203 jurisdictions of the FATF Global Network, as well as the UN, IMF, World Bank and other partners” and concludes on June 29.
Officials at the Ministry of Finance declined to comment to Arab News. The plenary rules prohibit participants from publicly divulging otherwise confidential information during sessions.
FATF, incepted in 1989, is a global anti-money laundering and terror finance prevention intergovernmental organization that holds sessions three times a year. It has 37 members and two observer countries.
Experts warn that Pakistan being placed on the grey list would carry a lot of repercussions.
“This will definitely be a serious matter. Already the stock exchange is being affected and declining. Our future borrowing will be suffering and interest rates will rise, making it more expensive,” Humayun Iqbal Shami, president of Pakistan Economic Forum, told Arab News. He doubts Pakistan will be able to satisfy the Western-influenced financial watchdog.
Pakistan has made efforts not be placed on FATF’s grey list, on which it previously remained for four years and was removed after compliance in 2015, said Dr. Vaqar Ahmed, joint executive director at Sustainable Development Policy Institute, to Arab News.
“We have implemented the most stringent regulations on the financial sector to meet or exceed FATF standards which have adversely affected banking customers, discouraged domestic and international investors, and inflow and outflow of funds,” he said.
Pakistan was previously able to withstand the impact of financial restrictions of FATF but the country’s debt rating fell from stable to “unsecure” last week on Moody’s Investors Service index, an international credit rating organization.
“Low reserves adequacy threatens continued access to external financing at moderate costs, in turn potentially raising government liquidity risks,” the agency wrote in a statement.
Under current circumstances, “the pressure becomes particularly acute if the country is facing pressures on the current account of the balance of payments as well as the local currency,” explained Ahmed.
Islamabad has made strides to comply with FATF statutes following the US co-sponsored motion in February this year, backed by Britain, France and Germany, which emphasized concerns about the depth of Pakistan’s commitment to tackle money laundering and terror financing.
Pakistan was unable to satisfy FATF then and subsequently the watchdog decided to place the country on its terror financing list from June if Pakistan could not counter illegal financial activities and seize assets of proscribed groups, entities, and individuals on a banned list from the UN Security Council (UNSC).
“We had to impose three restrictions as per the UNSC resolution” on proscribed entities and organizations, NACTA CFT Director Qaisar Ashfaq told Arab News. “Our compliance on arms embargo and travel restrictions were found to be satisfactory. However, freezing of assets, on which there were (serious) reservations, (is where) we had not done enough.”
Before FATF’s meeting in February, Pakistan initiated a seize, freeze and control operation against Jamaat-ud-Dawa and its charity wing Falah-e-Insaniat Foundation two days after President Mamnoon Hussain promulgated an amended Anti-terrorism Ordinance, 2018 to meet FATF requirements.
The previous government’s term ended and no legislation was passed in support of the ordinance, which later expired, that was to recognize the UNSC declarations.
The Securities and Exchange Commission of Pakistan in June compiled and passed new regulations on financial institutions in line with AML/CFT standards of FATF.
Pakistan prepared an action plan for review by FATF. The interim government, headed by caretaker Prime Minister Nasirul Mulk, held its first National Security Committee meeting in June to discuss FATF plenary and in a statement announced satisfaction over measures taken by Pakistan to meet the standards.
“In two months the country has taken concrete steps to meet FATF regulations. Pakistan has regulated the financial sector. But if this is politically motivated, Pakistan needs diplomatic backing from China, Saudi Arabia, and Turkey,” said Ahmed.
Pakistan optimistic about avoiding grey list as FATF meetings start
Pakistan optimistic about avoiding grey list as FATF meetings start
- Pakistan has made efforts not be placed on FATF’s gray list, on which it previously remained for four years
- The Securities and Exchange Commission of Pakistan in June compiled and passed new regulations on financial institutions in line with AML/CFT standards of FATF
Trump announces plans for new Navy ‘battleship’
WASHINGTON: President Donald Trump has announced a bold plan for the Navy to build a new, large warship that he is calling a “battleship” as part of a larger vision to create a “Golden Fleet.”
“They’ll be the fastest, the biggest, and by far 100 times more powerful than any battleship ever built,” Trump claimed during the announcement at his Mar-a-Lago resort in Florida.
The ship, according to Trump, will be longer and larger than the World War II-era Iowa-class battleships and will be armed with hypersonic missiles, rail guns, and high-powered lasers — all technologies that are still being developed by the Navy.
Just a month ago, the Navy scrapped its plans to build a new, small warship, citing growing delays and cost overruns, deciding instead to go with a modified version of a Coast Guard cutter that was being produced until recently. The sea service has also failed to build its other newly designed ships, like the new Ford-class aircraft carrier and Columbia-class submarines, on time and on budget.
Historically, the term battleship has referred to a very specific type of ship — a large, heavily armored vessel armed with massive guns designed to bombard other ships or targets ashore. This type of ship was at the height of prominence during World War II, and the largest of the US battleships, the Iowa-class, were roughly 60,000 tons.
After World War II, the battleship’s role in modern fleets diminished rapidly in favor of aircraft carriers and long-range missiles. The US Navy did modernize four Iowa-class battleships in the 1980s by adding cruise missiles and anti-ship missiles, along with modern radars, but by the 1990s all four were decommissioned.
Trump has long held strong opinions on specific aspects of the Navy’s fleet, sometimes with a view toward keeping older technology instead of modernizing.
During his first term, he unsuccessfully called for the return to steam-powered catapults to launch jets from the Navy’s newest aircraft carriers instead of the more modern electromagnetic system.
He has also complained to Phelan about the look of the Navy’s destroyers and decried Navy ships being covered in rust.
Phelan told senators at his confirmation hearing that Trump “has texted me numerous times very late at night, sometimes after one in the morning” about “rusty ships or ships in a yard, asking me what am I doing about it.”
On a visit to a shipyard that was working on the now-canceled Constellation-class frigate in 2020, Trump said he personally changed the design of the ship.
“I looked at it, I said, ‘That’s a terrible-looking ship, let’s make it beautiful,’” Trump said at the time.
He said Monday he will have a direct role in designing this new warship as well.
“The US Navy will lead the design of these ships along with me, because I’m a very aesthetic person,” Trump said.
