Pak claims no greylisting in FATF; India says meeting not over

Smita Sharma 
Tribune News Service
New Delhi, February 21

Pakistan on Wednesday claimed it was not being greylisted at ongoing meetings of the UN led intergovernmental body FATF (Financial Action Task Force).

Pakistan's Foreign Minister Khawaja M Asif wrote on Twitter on Wednesday morning: "Our efforts paid, FATF Paris 20 Feb meeting conclusion on US led motion to put Pakistan on watch list: No consensus for nominating Pakistan, proposing 3 months pause & asking APG (Asia-Pacific Group on Money Laundering) for another report to be considered in June. Grateful to friends who helped”

The six-day FAFT is currently underway in Paris. .

However, both Indian and US offcials said that the decision has yet to be taken.

While confirming ‘there was lack of consensus’ at the current ICRG round, Indian official sources added that the outcome could be different at the APG round starting on Wednesday.

Asked about the US led motion, State Department spokesperson Heather Nauert replied: “We’re anticipating that the final decision would be made on Thursday of this week. What he’s asking about is this Financial Action Task Force, and it’s where a lot of countries have come together and they look at various nations who we believe and those other countries believe are not doing enough to crack down on terror financing, counter-terrorism and the like. Pakistan is one of those countries that they’re taking a close look at, and they’ll be making an announcement sometime soon”.  

Established in 1989, FATF plenary meets every three months and seeks to set legal and regulatory mechanisms to counter terror financing globally.

At the last ICRG (International Cooperation Review Group) of FATF in Argentina, Pakistan and its regulatory banking body were put on a 90-day notice period for the seventh time. State Bank of Pakistan was asked to submit Action Taken Report against financial transactions of globally proscribed organisations, including Lashkar-e-Toiba; Jaish-e-Mohammad; and Falah-i-Insaniyat.

While Pakistan denied the reports, sources reminded that ICRG proceedings are closed door and Islamabad was using secrecy of proceedings as a shield. 

In the last ICRG at Buenos Aires, China had batted for Pakistan. This time reports in Pakistan’s press suggest Russia and Turkey also spoke in Islamabad’s defence. Interestingly, Khawaja Asif is currently in Russia where his discussions with counterpart Sergey Lavrov focussed on regional and international issues specially AfghanistanPakistan was previously on FATF’s blacklist for three years till February 2015. Its risk ratings and global lending rates will go up the FATF motion sails through. 

Grey listing means that a country is not entirely compliant with FATF’s standards of fighting money laundering and terrorist financing.