Pakistan remains on FATF's grey list

Pakistan continues to remain on Financial Action Task Force (FATF)grey list as it is still to implement the terror funding watchdog'saction plan.

The country has to work towards complete implementations till the next FATF plenary meet that will take place on October 17-22.

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It is now threeyears since Islamabad has been on the anti-terror financing body's grey list. For a country to be on the grey list is a signal that money in the country is being used for terror financing.

This impacts foreign investment flow in the country impacting the economy. Pakistan was put on the FATF grey list in June 2018.

According to estimates by the Pakistangovernment,the grey listingat the FATF has caused damage of around $10 billion annually to the country.

Pakistanhosts one of the largest numbers of UN-listed international terrorists with Islamabad reaching out to the United Nations Security Council (UNSC) to get pensions for some. Being on the UN terror list involves assets freeze, travel ban and arms embargo.

Over the course of several months, Pakistanhas approved a number of legislations on Counter Terror Financing (CTF) and Anti Money Laundering (AML) as part of its commitments to FATF.

An on-site visit by the FATF team will take place as part of the process to see Pakistan's action to combat the issue of terror financing.

Meanwhile, FATF has expressed concern over Pakistan's inaction againstUnited Nations listed terror groups. The country has one of the largest numbers of UN listed terror groups includingLashkar-e-Taiba's Hafiz Saeed and Jaish-e-Mohammed's Masood Azhar.

While the country has made "substantial progress" addressing26 of the 27 items of the 2018 action plan, FATF presidentDr Marcus Pleyer said, "investigationsand prosecutions of senior leaders and commanders of UN-designated terrorist groups".

In fact, Pakistan had approached United Nations Security Council for "basic expense" for 26/11 mastermind Hafiz Saeed, Lakshar-e-Taiba's leader Zaki ur Rehman Lakhvi and Mahmood Sultan Bashiruddin, a Pakistani nuclear engineer -all threeUN listed terrorist.

The 1267 sanctions regime of UNSC includes threemain areas - assets freeze, travel ban, and arms embargo.

In response to WION's question, if FATF is hopeful that Pakistan will take action till the next plenary,Pleyer said, "It remains to be seen. Pakistan knows exactly what is expected from them. There is this remaining action item, that is concentrating on counter-terror financing"

"We will closely cooperate and observe the progress. Thankful for the commitment of the Pakistangovernmentto do so. In fourmonths' time we will look into the progress,"Pleyer added.