FATF keeps Pakistan on grey list over inadequate 'terrorist financing' controls

Financial Action Task Force plenary session in progress in Paris, France, on February 19, 2020. (Photo courtesy: FATF/File)
Short Url
Updated 26 February 2021
Follow

FATF keeps Pakistan on grey list over inadequate 'terrorist financing' controls

  • While acknowledging progress made by the country, FATF president says Pakistan's financial system still vulnerable to terror funding
  • Pakistan reiterates commitment to work with global financial watchdog and bring its system in line with international standards

ISLAMABAD: A global watchdog on Thursday announced its decision to keep Pakistan "under increased monitoring" over inadequate terror funding controls after a three-day virtual plenary, giving the South Asian nation until June to fulfill all conditions so it could be removed from a grey list.
The Financial Action Task Force (FATF) sets standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terror financing and other related threats to the integrity of the international financial system.
In 2018, FATF placed Pakistan on its "grey list" of countries with inadequate controls over terror financing and gave it a 27-step action plan to implement, which includes passing new legislation.
"The FATF recognizes that Pakistan has made significant progress to improve its anti-money laundering and counterterrorism financing framework," FATF president Marcus Pleyer said. "However, some serious deficiencies remain. All of these deficiencies are in areas that relate to terrorist financing." 
Pleyer noted that "out of 27 items on its action plan, three still need to be fully addressed." 
"I again recognize the progress that Pakistan has made, but I strongly urge the completion of the action plan," he added. 
Reacting to the development, Pakistan's finance ministry said in a statement it had "undertaken enormous work" to strengthen its financial framework and address the deficiencies related to strategic counterterrorism financing. 
"The FATF has also acknowledged the continued high-level political commitment of Pakistan to combat terrorist financing which, according to FATF statement, has led to significant progress across a comprehensive countering financing of terrorism plan," the statement added. 
It noted that the country had "made notable progress in the remaining 3 action items" which were now "partially addressed." 
Pakistan's Minister for Industries and Production Hammad Azhar noted in a Twitter post that FATF member states had acknowledged his country was "subject to perhaps the most challenging & comprehensive action plan" ever given to any state. He reiterated Islamabad's commitment to comply with the FATF evaluation process and do everything to bring Pakistan's financial system in line with global standards.

 

 


At UN, Pakistan warns India’s suspension of water-sharing treaty carries security implications

Updated 4 sec ago
Follow

At UN, Pakistan warns India’s suspension of water-sharing treaty carries security implications

  • Brokered in 1960, Indus Waters Treaty divides control of Indus basin rivers between India and Pakistan
  • Pakistan urges UN to ensure prevention of unilateral suspensions, enforcement of international treaties

ISLAMABAD: Pakistan’s UN Ambassador Asim Iftikhar Ahmad warned the international community this week that any unilateral suspension of the Indus Waters Treaty (IWT) by India carries with it humanitarian, peace and security implications.

India last year announced it was holding the IWT, mediated by the World Bank in 1960, “in abeyance” amid increasing political tensions with Islamabad. The IWT divides control of the Indus basin rivers between the two nuclear-armed neighbors.

It grants Pakistan rights to the Indus basin’s western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower, while India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes, according to the agreement.

Speaking at the “Arria Formula Meeting of the Security Council on Upholding the Sanctity of Treaties for the Maintenance of International Peace and Security” on Saturday, Ahmad noted the IWT was regarded as one of the most resilient water-sharing treaties that had stood the test of time, crises and political tensions. 

“Any unilateral disruption to established water-sharing arrangements carries humanitarian, environmental, and peace-and-security implications, particularly for downstream 240 million people of Pakistan,” he said. 

“When the lifelines of millions are placed under unilateral discretion, the risks are not hypothetical — they are real and immediate.”

The Pakistani envoy reiterated that the treaty was not a “bilateral concern” but a test case for the international system. He said if a treaty designed to prevent disputes or conflicts is disregarded unilaterally, “then no agreement is truly insulated from politics or all kinds of machinations.” 

“Borders, demilitarized zones, trade corridors, and humanitarian arrangements all become more fragile,” Ahmad noted. 

He underscored that the UN and the Security Council have a vital role to play, which includes the prevention of unilateral suspensions and enforcement of treaties. 

“Compliance with treaties must therefore be regarded as a strategic imperative for conflict prevention and resolution,” he said. 

Pakistan has warned India that it will not let New Delhi stop or divert the flow of its rivers. Islamabad said last year it would consider any move on India’s behalf to hinder the flow of its waters as “an act of war.”

The two countries engaged in the worst fighting between them in decades in May last year after India blamed Pakistan for being involved in a militant attack on tourists in Indian-administered Kashmir. Islamabad denied it was involved and called for a credible probe into the incident. 

India and Pakistan pounded each other with missiles, drones, jets and exchanged artillery fire for four days before Washington brokered a ceasefire on May 10.