Pakistan has been recently put on grey list of the Paris-based Financial Action Task Force (FATF) as the country has failed to control terror financing on its soil. The step will cause diming of relations between Islamabad and Washington; on the other hand, the country economic will be affected.
The financial watchdog made the announcement last week, blaming the country for its inability to control terror financing on its soil.
Previously, officials had said that the organization has given three months deadline in order that the country took steps for prevention of financing terrorist groups in its soil, otherwise the country would be put on grey list.
The US tabled the motion, seeking to place Pakistan on the watch-list of countries considered non-compliant with global anti-terror financing measures.
In late February, Turkey and Saudi Arabia opposed the US-led move to place Pakistan on the watch-list. But the US pushed for an unprecedented second discussion on Pakistan held on February 22.The US alleges Pakistan has not taken any action against Hafiz Saeed, the alleged mastermind of the Mumbai attacks.
In build-up to the meeting in Paris, Islamabad had repeatedly hoped diplomatic efforts would help avert the action based on a proposal from the US and allies.
Hours before of the FATF, an official for Pakistan ministry of foreign affairs asked the watchdog to remove the country from the grey list. Pakistani delegates informed the task force of the measures Islamabad had taken to crack down on money-laundering and terror-financing. However, the watchdog was not convinced.
International relations experts believe that re-putting Pakistan on grey list will affect the country’s legal and political prestige as well as its financial system. Based on Pakistan media outlets, there are possibilities that Pakistan will be probably put on EU blacklist.
It is worth mentioning that more than 200,000 terrorists from various countries of the world have been trained in terrorist safe havens in Pakistan during the past 40 years. Leaders of various terrorist groups are supported by ISI and given sanctuaries to plan and organize their attacks on various countries of the region in particular Afghanistan.
It is also worth mentioning that the Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the ministers of its member jurisdictions.
The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.