ISLAMABAD: Pakistan’s foreign office on Monday rejected India’s defense minister’s recent statement that the Financial Action Task Force (FATF) could “blacklist Pakistan anytime” as the Asia-Pacific Group on Money Laundering (APG) said in one of its reports that Islamabad had either fully, largely or partially complied with 36 of the 40 parameters set by the global watchdog to curb money-laundering and terrorism financing.
Islamabad was formally placed on the FATF gray list in June last year due to “strategic deficiencies” in its anti-money laundering and terrorism financing regime. The South Asian nation has since accused its arch-rival India of trying to get Pakistan downgraded further to the watchdog’s blacklist.
The foreign office said in a statement on Monday that India’s Defense Minister Rajnath Singh’s remark reinforced “Pakistan’s concerns, repeatedly highlighted to the FATF membership, about India’s attempts to politicize the FATF proceedings to further its narrow, partisan objectives.”
Singh claimed last week that the FATF could “blacklist Pakistan for terror financing anytime.”
However, Pakistan said that India’s incessant smear campaign and blatant partisanship called into question its credentials to be the co-chair of the Asia-Pacific Joint Group reviewing Pakistan’s progress in implementing the FATF Action Plan.
“We hope that the broader FATF membership would take cognizance of India’s continuing malicious campaign against Pakistan and reject any attempt aimed at politicizing the FATF proceedings,” the foreign office said. “It is important for FATF to ensure that the process remains fair and unbiased.”
Meanwhile, the APG’s 228-page report on money-laundering and terror financing in Pakistan came just a week ahead of the FATF’s plenary in Paris on Oct 13-18 that would determine whether Islamabad should be removed from its gray list or downgraded further to its blacklist.
The report based on Pakistan’s performance as of October 2018 showed that the country was fully “compliant” only in one aspect relating to financial institutions’ secrecy laws. It was found “partially compliant” on 26 recommendations and “largely compliant” on nine others.
The ministry of finance declined to comment on the report on Monday, saying it was “already out and we have nothing to add to it.”
The APG report said the State Bank of Pakistan did not have a clear understanding of the money-laundering and terrorism financing risks unique to the sectors it supervised. It added that the SBP was improving its understanding and implementing a risk-based approach, including conducting regular onsite and thematic anti-money laundering and countering the financing of terrorism [AML/CFT] supervision activities.
“Some improvement in AML/CFT compliance is evident as a result of SBP’s supervision, but the value of monetary sanctions imposed is low,” the report said, adding that the Securities and Exchange Commission of Pakistan had also a limited understanding of the money-laundering and terrorism financing risks and had not implemented a risk-based supervisory approach.
Although terrorism (excluding TF) poses a significant risk to the security, economy and territorial integrity of Pakistan, the seizure and confiscation amount was nil, it pointed out.
The report said that in view of the relatively high number of investigations into money-laundering offenses, the lack of confiscation action reflected that the focus of the investigations and prosecutions was not specifically on tracing the money.
“In addition, TF [terrorism financing] confiscation amounts (approx. USD $107,000 in 5 years) needs to be improved further,” it added.
Muzamil Aslam, a senior economist, said that Pakistan could not be included in the FATF’s blacklist on the basis of the APG report as the country had shown “significant progress” on 36 out of 40 parameters of the watchdog.
“This report is a proof of our willingness to improve our legal and financial systems to meet the FATF’s demands. Therefore, it should help offset uncertainty in our capital market,” he told Arab News.
Pakistan rejects Indian claim of blacklisting by global watchdog
Pakistan rejects Indian claim of blacklisting by global watchdog
- APG report says Islamabad has shown progress on 36 out of 40 parameters set by the global watchdog
- Economists say the report proved Islamabad’s willingness to improve its financial and legal systems
Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief
- Pakistan’s chief of defense forces visits South Waziristan district bordering Afghanistan
- Pakistan says has killed 481 Afghan Taliban operatives since clashes began last Thursday
ISLAMABAD: Pakistan’s Chief of Defense Forces Field Marshal Syed Asim Munir said on Wednesday that peace with Afghanistan can only prevail if Kabul renounces support for “terrorism” and “terrorist” organizations, the military’s media wing said as the two countries remain locked in conflict.
Fighting between the two neighbors, the worst in decades, broke out last Thursday night after Afghan forces attacked Pakistan’s military installations along their shared border. Afghanistan said its attacks were in response to earlier airstrikes by Pakistan against alleged militant hideouts in its country.
Pakistan accuses Afghanistan of sheltering militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) on its soil who have launched attacks against Pakistani civilians and security forces in recent years. Kabul denies the allegations.
Munir visited Wana town in Pakistan’s South Waziristan district to review the security situation and troops’ operational preparedness at the Afghan border, the Pakistani military’s media wing said in a statement.
“The Field Marshal reiterated that peace could only prevail between both sides if the Afghan Taliban renounced their support for terrorism and terrorist organizations,” the Inter-Services Public Relations (ISPR) said.
The military chief said the use of Afghan soil by militant outfits to launch attacks against Pakistan was unacceptable, vowing that “all necessary measures” would be taken to neutralize cross-border threats.
During the visit, Munir was briefed by military commanders about ongoing intelligence-based operations and measures being taken by the military to manage the border with Afghanistan.
He was also briefed about “Operation Ghazab Lil Haq” or “Wrath for the Truth,” the name Pakistan has given to its military operation against Afghan forces, the ISPR said.
The Pakistani military chief spoke to troops deployed in the area, praising their vigilance, professional conduct and high morale, the ISPR said.
Pakistan’s Information Minister Attaullah Tarar said on Wednesday that the military has killed 481 Taliban operatives, injured more than 690 and destroyed 226 Afghan checkposts since clashes began.
Arab News has been unable to verify claims by both sides about the damages they claim to have inflicted on each other.
Afghanistan has signaled it is open for dialogue but Pakistan rejected the offer, saying it would continue its military operations till its objectives were achieved.
Since the conflict began, diplomatic efforts have intensified with several countries, including global bodies such as the European Union and United Nations, urging restraint and calling for talks.
Turkish President Recep Tayyip Erdogan told Pakistani Prime Minister Shehbaz Sharif that Ankara would help reinstate a ceasefire, the Turkish Presidency said on Tuesday, as other countries that had offered to mediate have since been hit by the conflict in the Gulf.
