Major blow to Pakistan as it remains on terror-financing watchdog FATF's grey list

Being on the grey list means, the country needs to make reforms in its financial system so that money is not used for terrorism.

Major blow to Pakistan as it remains on terror-financing watchdog FATF's grey list

New Delhi: In a decision that was on expected lines, Pakistan continues to remain on the terror-financing watchdog Financial Action Task Force's (FATF) grey list that will impact the economy of the country. The decision of the FATF is a major blow to the Imran Khan-led government.

Being on the grey list means, the country needs to make reforms in its financial system so that money is not used for terrorism.

Pakistan was placed on the Paris based body's grey list in June 2018 and given an action plan to implement. It has been two years and Islamabad continue to remain on the list since it failed to implement the action plan.

The FATF began its three-day virtual plenary meeting on October 21 (Wednesday) in which it reviewed Pakistan's performance in implementation of the action plan recommended by it to choke channels of funding to the terror groups operating from the country.

India on October 22 (Thursday) had reiterated that Islamabad has not taken any action on terrorist it has been providing safe havens.

Ministry of External Affairs Spokesperson Anurag Srivastava had said, "As is well known, Pakistan continues to provide safe havens to terrorist entities and individuals and has also not yet taken any action against several terrorist entities and individuals including those proscribed by the UNSC such as Masood Azhar, Dawood Ibrahim, Zakir-ur-Rahman Lakhvi etc."

The terrorists listed by India are responsible for a number of terror attacks in India like 26/11 Mumbai terror attacks. Srivastava had said Pakistan has addressed only 21 out of 27 "action items" prescribed by the Financial Action Task Force (FATF) to contain terror financing.

Asked about the possibility of the FATF blacklisting Pakistan for failing to check terror financing, Srivastava had said the global anti-terror watchdog has laid out standards and procedures for such action. "It is understood that Pakistan has addressed only 21 action items so far out of the total 27 points in the FATF action plan. Six important action items are yet to be addressed," he had said.

The FATF had put Pakistan on its "grey list" in 2018 for failing to contain terror financing in the country. The global body has been periodically reviewing the implementation of the action plan it had recommended to Pakistan to curb financial activities of terror groups.

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Notwithstanding the coronavirus pandemic in the region, Pakistan has been resorting to unprovoked ceasefire violations along the LoC and making concerted efforts to push militants into Kashmir.

Pakistani hostilities increased after India announced its decision to withdraw the special status of Jammu and Kashmir and divide the state into two union territories in August 2019.