Global anti-terrorism watchdog Financial Action Task Force (FATF) has announced to keep Pakistan on its grey list till June 2021. This has been done after the failure of Pakistan to fully comply with a 27-point action plan to combat terrorism.
Key Points
- This decision was taken after a 3-day plenary session that was held virtually.
- FATF President Marcus Pleyer has pointed out that there was a serious deficiency on Pakistan’s part to counter terror financing. Pakistan will remain under increased monitoring as serious deficiencies remain related to terror financing.
- As per FATF, Pakistan has taken many steps, but there are three important points from 27 action points remaining to be acted upon.
Three Action Points on which Pakistan needs to act as per FATF
- Demonstrating that Terror funding investigations and prosecutions target persons and entities acting on behalf or at the direction of the designated persons or entities;
- Demonstrating that Terror funding prosecutions result in proportionate, effective, and dissuasive sanctions.
- Demonstrating implementation of targeted financial sanctions against all designated terrorists.
Background
FATF had also retained Pakistan on the “grey list” in October 2020. Being on the grey list of FATF makes it difficult for Pakistan to get funds from the World Bank, the International Monetary Fund, the European Union, and the Asian Development Bank.