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
Agonizing wait as Switzerland works to identify New Year’s fire victims
- Authorities begin moving bodies from burned-out bar in luxury ski resor Crans-Montana
- At least 40 people were killed in one of Switzerland's worst tragedies
CRANS-MONTANA, Switzerland: Families endured an agonizing wait for news of their loved ones Friday as Swiss investigators rushed to identify victims of a ski resort fire at a New Year’s celebration that killed at least 40 people.
Authorities began moving bodies from the burned-out bar in the luxury ski resort town Crans-Montana late Friday morning, with the first silver-colored hearse rolling into the funeral center in nearby Sion shortly after 11:00 am (1000 GMT), AFP journalists saw.
Around 115 people were also injured in the fire, many of them critical condition.
As the scope of the tragedy — one of Switzerland’s worst — began to sink in, Crans-Montana appeared enveloped in a stunned silence.
“The atmosphere is heavy,” Dejan Bajic, a 56-year-old tourist from Geneva who has been coming to the resort since 1974, told AFP.
“It’s like a small village; everyone knows someone who knows someone who’s been affected,” he said.
It is not yet clear what set off the blaze at Le Constellation, a bar popular with young tourists, at around 1:30 am (0030 GMT) Thursday.
Bystanders described scenes of panic and chaos as people tried to break the windows to escape and others, covered in burns, poured into the street.
‘Screaming in pain’
Edmond Cocquyt, a Belgian tourist, told AFP he had seen “bodies lying here, ... covered with a white sheet,” and “young people, totally burned, who were still alive... Screaming in pain.”
The exact death toll was still being established.
And it could rise, with canton president Mathias Reynard telling the regional newspaper Wallizer Bote that at least 80 of the 115 injured were in critical condition.
Swiss authorities warned it could take days to identify everyone who perished, an agonizing wait for family and friends.
Condolences poured in from around the world, including from Pope Leo XIV, who offered “compassion and solidarity” to victims’ families.
Online, desperate appeals abound to find the missing.
“We’ve tried to reach our friends. We took loads of photos and posted them on Instagram, Facebook, all possible social networks to try to find them,” said Eleonore, 17. “But there’s nothing. No response.”
‘The apocalypse’
The exact number of people who were at the bar when it went up in flames remains unclear.
Le Constellation had a capacity of 300 people, plus another 40 people on its terrace, according to the Crans-Montana website.
Swiss President Guy Parmelin, who took office on Thursday, called the fire “a calamity of unprecedented, terrifying proportions” and announced that flags would be flown at half-mast for five days.
“We thought it was just a small fire — but when we got there, it was war,” Mathys, from the neighboring village of Chermignon-d’en-Bas, told AFP. “That’s the only word I can use to describe it: the apocalypse.”
Authorities have declined to speculate on what caused the tragedy, saying only that it was not an attack.
Several witness accounts, broadcast by various media, pointed to sparklers mounted on champagne bottles and held aloft by restaurant staff as part of a regular “show” for patrons.
‘Dramatic’
Pictures and videos shared on social media also showed sparklers on champagne bottles held into the air, as an orange glow began spreading across the ceiling.
One video showed the flames advancing quickly as revellers initially continued to dance.
One young man playfully attempted to extinguish the flames with a large white cloth, but the scene became panic-stricken as people scrambled and screamed in the dark against a backdrop of smoke and flames.
The canton’s chief prosecutor, Beatrice Pilloud, said investigators would examine whether the bar met safety standards.
Red and white caution tape, flowers and candles adorned the street outside, while police shielded the site with white screens.
Italian Foreign Minister Antonio Tajani, who said 13 Italians had been injured in the fire, and six remained missing, was among those to lay flowers at the site.
The French foreign ministry said nine French citizens figured among the injured, and eight others remained unaccounted for.
After emergency units at local hospitals filled, many of the injured were transported across Switzerland and beyond.
Patients are being treated in Italy, France and Germany, and Polish Prime Minister Donald Tusk said his country was ready to provide “specialized medical care to 14 injured.”
Multiple sources told AFP the bar owners were French nationals: a couple originally from Corsica who, according to a relative, are safe, but have been unreachable since the tragedy.
