Just days after the spectacle of
bonhomie between India and China, Financial Action Task Force (FATF) chaired by
China decided to keep Pakistan in grey list. Official reports indicate, Pakistan
has complied with mere five of the 27 tasks in action-list for controlling the
terror financing to JeM (Jaish-e-Mohammed) and LeT (Laskhar-e-Toiba). But China
has let off “all weather friend” Pakistan with a stern warning. The intergovernmental
body FATF established in 1989 during the G7 Summit in France set standards and legal
measures to combat money laundering. After the 9/11 attacks in 2001, terror
financing has been added to its charter. Through peer reviews from member
countries FATF monitors the implementation of its recommendations. In 2012 it
included measures to counter financing for controlling weapons of mass
destruction
FATF currently has forty recommendations
for money laundering and nine Special Recommendations (SR) for terror
financing. SR for countering terror financing are advocated by 180 countries.
Since 9/11, cracking down on global terrorism has become one of the prime
objectives of this organisation. In line with its statutory functioning, under
its jurisdiction FATF started identifying the Non-Cooperative Countries/Territories
or putative FATF blacklist which essentially function as epicentres of terror.
FATF doesn’t have investigative authority but black listing effectively
protected the international financing systems from misuse. Ever since FATF has
been regularly releasing list of the blacklisted countries. Countries which are
deemed as safe havens for terror are initially included in the grey list
warning them to tackle terror financing issues. If the country fails to
implement satisfactory measures it will be black listed.
As of now Iran and North Korea are
in black list and both going through severe financial crisis. Black listing
will be a huge blow to Pakistan battling massive economic slowdown. Access to
international lending, exports, imports and remittances will be impacted. A debt-ridden
Pakistan will find it extremely difficult to extricate itself from vicious debt
trap.
Currently FATF has 39 members- 37
member countries and two blocs- EU (European Union) and GCC (Gulf Cooperation
Council). It has 30 Observer member which includes countries and international
organisations like IMF and the UN. FATF
countries have associate members or FATF style regional bodies (FSRB) which
carry out similar functions. In August a 41-member plenary of Asia Pacific
Group an associate member of FATF placed Pakistan under the “Enhanced Expedited
Follow Up List” for complying with only 8 of 40 recommendations. Out of 11
effective parameters it was judged low on 10. APG report indicated that
Pakistan shall remain in the grey list at the FATF plenary (decision making
body) in Paris starting on Oct 13th. Plenary meets which meets thrice a year in
February, June and October to decide inclusion of countries in various lists.
Decisions are taken through consensual approval of member. Veto by three
members can stall any majority decision.
Burgeoning evidence against Pakistan
as safe havens forced FATF to place Pakistan under grey lost in June 2018.
Islamabad managed to avoid such inclusion in February 2018 with the support of
China, Turkey and Saudi Arabia. But in June 2018, America prevailed on Saudi
Arabia and assuring a bigger role for China at FATF India managed Beijing. As a
result, Pakistan was included in grey list. China subsequently became
vice-president of FATF. For three years between 2012 and 2015 Pakistan has been
in grey list. China’s term of one-year Vice-Presidentship began in July 2018.
In June 2019 China became President.
Pakistan’s poor credibility and
compliance record mandates FATF to include it in the black list, with Beijing
at the helm of affairs, countries were sceptical of Islamabad’s inclusion in
the black list. Voicing out his scepticism in UNGA address, Prime Minister Modi
urged nations from meddling in the functioning of global regulatory bodies.
Rampant political intervention has rendered these bodies ineffective and
toothless. China vetoed UN resolution for inclusion of Masood Azhar’s in UNSC
1267 list as internationally designated terrorist for a decade. Similarly, UNHRC
currently dominated by countries with immense financial clout and abysmal human
rights has become a dodgy institution now. Setting dangerous precedents
powerful countries are blatantly undermining credibility of global
organisations are giving free pass to rogue nations, facilitating evasion of
scrutiny and sanctions.
As a perfunctory measure days
before FATF plenary session Pakistan which has custodial possession of LeT
leader Hafiz Saeed, arrested four terrorists- Zafar Iqbal, Yahya Aziz, Muhammed
Ashraf and Abdul Salam on charges of terror financing like in June. Ahead of
FATF’s decision Alice Wells head of US department’s South and Central Asian
Bureau welcomed arrest of the four terrorists and called for their prosecution.
Well versed with Pakistan’s facile measures the US refused to call the bluff of
Islamabad’s perfidy.
Despite renewed affirmations for
countering global terror, countries with vested interests in Pakistan have been
using terrorism as a geopolitical instrument. While the role of China’s support
to rescue Pakistan at international forum is well known, the US keen on
obtaining Pakistani support for bringing Afghan Taliban to negotiation table
has softened his stance. Together resistance from the anti-India squad
comprising of Malaysia, Turkey has ensured Pakistan’s from being downgraded to black
list. The decision is once again deferred by four months setting February as
the new deadline for completing full action. In the meanwhile, Pakistan will
continue to receive aid from IMF, ADB, World Bank and the EU and will avert the
risk of being downgraded by credit rating agencies like Moody’s Fitch and
S&P.
FAFT’s decision underscores the
robustness of China-Pakistan tango that is successfully hoodwinking the
regulatory measures of global bodies. In anticipation of Beijing’s rescuing
act, Pakistan has reportedly leased 55 sq km of land stretch in the Harami Nala
near to Sir Creek Area, 10 km from the International Maritime Boundary. This
latest act is instructive of growing Sino-Pakistan nexus to counter India.
Emboldened Pakistan will continue to intensify border offensive.
@ Copyrights reserved.
No comments:
Post a Comment