FATF decision on Pakistan- Relevance for UPSC Exam
- GS Paper 2: International Relations-
- Important International institutions, agencies and fora- their structure, mandate
- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
FATF decision on Pakistan- Context
- In a repetition of its decisions over the past three years, the Financial Action Task Force (FATF) retained Pakistan on its ‘grey list’ of jurisdictions under increased monitoring.
- The FATF also placed Turkey on the grey list and cleared Mauritius from it.
- Key Mandate of the FATF: The FATF evaluates countries on efforts to check terror financing and money laundering.
FATF decision on Pakistan- Key Findings
- The FATF found that Pakistan had cleared 30 of a total of 34 tasks assigned in two batches, and would face another review in February 2022.
- Pakistan had failed to conduct effective investigations and prosecutions the senior leadership of United Nations-designated terror groups.
- For example, Jaish-e-Mohammed (JeM) chief Masood Azhar, Lashkar-e-Toiba (LeT) chief Hafiz Saeed, Dawood Ibrahim and other command and control chiefs of terror groups.
- These terror groups are responsible for the 26/11 Mumbai attacks in 2008, the IC-814 hijacking in 1999 and several major attacks and bombings in Jammu and Kashmir.
Engaging the Taliban: India- Afghanistan Relations
FATF decision on Pakistan- Associated Concerns
- No Effect on the Ground: increased monitoring by the FATF of Pakistan — from 2008-2009, 2012-2015, and 2018-2021 — has failed to achieve desired outcomes.
- While some of the terrorists have been tried and convicted for terror financing charges in Pakistani courts, none of them has been effectively prosecuted for violence in India.
- Lack of effectiveness of FATF: These much-delayed outcomes speak as much to Pakistan’s lack of credibility on terrorism as to the FATF’s own lack of effectiveness.
- Unwillingness to place Pakistan on the Black List: Despite Pakistan’s failure to fulfill FATF’s task list, the FATF is not considering placing Pakistan on the ‘black list’.
- Accusing FATF of politicizing’ the process: both from those who would like to see tough action for non-compliance by Pakistan, and from Pakistan itself.
- Pakistan has accused India of turning the technical process into a political one by “targeting” Pakistan.
- Concerns over Taliban Takeover of Afghanistan: This may lead to the growth of transnational terror groups such as al-Qaeda, taking advantage of the Taliban takeover to build new safe havens and financing networks.
Shanghai Cooperation Organisation (SCO)- Background, Member states and India’s Association
FATF decision on Pakistan- Way Forward
- Effective Implementation: FATF must ensure that the investigation of Pakistan is not an open-ended process, and is brought to a credible and effective conclusion at the earliest.
- Taking cognizance of Afghanistan Issue: The FATF must keep its commitment from 2001 (when it added terror financing to its mandate) to prevent all terror groups from accessing various funding networks.