tation, on June 24, 2011, the FATF observed: “The FATF is particularly concerned with the lack of implementation regarding Pakistan’s terrorist financing offence and calls upon Pakistan to demonstrate specific action.” Subsequent to this, Pakistan was put on the grey list on October 19, 2012. While grey-listing, FATF appreciated Pakistan’s efforts in some technical areas but remarked: “However, despite Pakistan’s high-level political commitment…Pakistan needs to enact legislation to ensure that it meets the FATF standards regarding the terrorist financing offence and the ability to identify, freeze, and confiscate terrorist assets.”
Pakistan came out of the grey list on February 27, 2015 with FATF remarking: “Pakistan will work with APG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report, in particular, fully implementing UNSC Resolution [United Nations Security Council Resolution 1267.” Pakistan got out of the grey list by adopting some legal measures in form but saving its “strategic assets”(terrorists), which were sanctioned under UNSCR 1267. Pakistan’s elected government writ is limited. Pakistan Army runs the policy to be adopted for Pakistan-based terrorist organizations. FATF accepted political commitment without understanding that it had no mandate to do so. Pakistan’s deceit coupled with FATF’s ignorance enabled it escaping the grey list. A decision taken on doubtful assurances and without considering effective performance had to be revisited. Three votes from the FATF’s members are needed for a country not to be put in the grey list. China, Turkey and Saudi Arabia ( leading the six-nation Gulf Cooperation Council (GCC) ,that voted as one bloc, were against Pakistan being put in the grey list. Saudi Arabia, with some coaxing by US, understood Pakistan’s game and China opted for a larger role in FATF rather than support Pakistan Thus, Pakistan was again grey listed in June 2018. From Jun 18 Pakistan continues to fail to meet the successive deadlines set by the FATF.
Recent Developments In Pakistan
Pakistan media and establishment dutifully blame India for exerting pressure through FATF. Mr. Rehman Malik, former Interior Minister of Pakistan, has published an open appeal and promised to approach the International Court of Justice challenging the legitimacy of FATF to play the role of financial observer of world states. Islamabad also hired US lobbying firm Linden Strategies to sell its narrative that Pakistan was on track to deliver on its obligations. Pakistan has passed laws in Sep 2020 claiming that these are in compliance of the FATF standards. Out of 27 points action plan given by FATF to Pakistan, Pakistan was declared fully compliant on five points In October 2019. The FATF plenary in February 2020 found Pakistan compliant on nine additional points.
FATF Plenary 21 to 23 October 2020 And Pakistan.
This Virtual Plenary meet was held in the backdrop of the persisting COVID-19 pandemic with all its ill effects. The pandemic has severely impacted some authorities’ ability to implement measures to detect, prevent, and investigate money laundering and terrorist financing. The functioning of the FATF follow-up process has also been adversely affected demanding some policy and procedural tweaking. The FATF seems to have adopted a cautious approach during this meet due to the Pandemic. The FATF Plenary decided to hold the next Joint Experts’ Meeting virtually from 23-25 November 20, to discuss current and emerging money laundering and terrorist financing risks. The meet notes that Pakistan has made significant progress and has now largely addressed 21 of the 27 action items Pakistan is urged to swiftly complete its full action plan by February 2021. Another deadline to be breached! The remaining six points of the action plan are all related to terror financing, enforcement of the law, and effectiveness on the ground
Pakistan is touting this achievement that 21 of 27 FATF recommendations having been implemented. It is noteworthy that the basic issue, which has been c