close

News WrapGet Handpicked Stories from our editors directly to your mailbox

Pakistan wanting in implementing UN sanctions on Hafiz Saeed: FATF subgroup findings

File photo of Hafiz Saeed. Photograph:( Zee News Network )

WION New Delhi, Delhi, India Oct 06, 2019, 09.29 PM (IST) Written By: Anas Mallick , Sidhant Sibal

The Asia pacific group (APG) of the Financial Action Task Force in its mutual evaluation report has said Pakistan hasn't taken sufficient action to implement sanctions under the United Nation Security Committee of 1267 on 26/11 mastermind Hafiz Saeed and country "faces significant money laundering and terror financing risks" 

Releasing the Mutual Evaluation Report of Pakistan adopted during the annual meet in Canberra, Australia in August, APG said, "Pakistan has not taken sufficient measures to fully implement UNSCR 1267 obligations against all listed individuals and entities – especially those associated with Lashkar-e-Taiba (LeT)/Jamaat-ud-Dawa (JuD), and Falah-i-Insaniat Foundation (FIF) as well as the groups’leader Hafiz Saeed."

The development comes days after Pakistan approached the United Nations security council (UNSC) to allow Saeed, a UN listed global terrorist, draw up to Pakistani rupees 150,000 from his accounts every month for his "basic expenses". 

The APG rapped the central bank, State Bank of Pakistan, and said it does not have a "clear understanding of the money laundering and terror financing risks unique to the sectors it supervises" and the market regulator Securities and Exchange Commission of Pakistan for not implementing "a risk-based supervisory approach."

Calling Pakistan to "adequately identify, assess and understand" risks associated with "terrorist groups operating in Pakistan such as Da’esh,AQ, JuD, FiF, LeT, JeM, HQN', the 41 member grouping said Islamabad should "implement a comprehensive and coordinated risk-based approach" to combat money laundering and terror financing.

The report is released just days before the FATF's plenary meet in Paris from October 13-18 which could decide if Pakistan could be blacklisted or removed from the grey list. 

The mutual evaluation report also highlighted how terrorist groups operating in Pakistan such as ISIS-Khorasan, Tehrik-e Taliban Pakistan, Quetta Shura Taliban, Haqqani Network, and Lashkar-e-Taiba (including its affiliates Jamaat-ud-Dawa and Falah-i-Insaniat Foundation) "raise funds through a variety of means including direct support, public fundraising". 

Pakistan faces significant risks of terror financing both from legitimate and illegitimate sources "as well as weak, regulation/supervision of certain sectors (such as hawala/hundi, NPOs (Non-Profit Organizations) and DNFBPs (Designated Non-Financial Businesses and Professions) and porous borders."

Pakistan was put on greylist by the FATF last year and it's causing a loss of $10 billion to Pakistani economy annually. A blacklist will further have a detrimental impact on a weak Pakistani economy as investors won't be keen to invest in a country that is prone to terror financing.

Story highlights

The development comes days after Pakistan approached the United Nations security council (UNSC) to allow Saeed, a UN listed global terrorist, draw up to Pakistani rupees 150,000 from his accounts every month for his "basic expenses".