Terror Financing: India likely to raise Pakistan’s inaction at FATF

Pakistan’s inaction to curb terror financing will be raised by India during the Financial Action Task Force(FATF)’s plenary session in October. Though given ample time, Pakistan hasn’t yet complied with 13 out of the 27 Action Plan conditions which were put forth to it during the last FATF plenary.

India is likely to highlight Pakistan’s inaction to try those responsible for the 26/11 Mumbai attacks, Pulwama terror cases and even the murder of Wall Street journalist Daniel Pearl.

Pakistani Financial Monitoring Unit (FMU) Director-General Lubna Farooq is going to point out the 14 ‘implemented’ conditions to the FATF and the action it has planned to take for the remaining conditions in the next eight days.

Besides being on the FATF grey list since June 2018, the committee has also asked Pakistan to comply with 30 more recommendations.

Pakistan has a lot of explaining to do to the FATF. It has expressed concern about the effectiveness of sanctions and remedial actions taken to curb terror financing from financial institutions for banned terror organizations. Also, the informal and illegal money transfer business of ‘hundi-hawala’ is also going on in the country unabated.

Pakistan has to come forth with replies to why it has not yet taken action against these cash courier systems. It is yet to ensure the terror cases filed come to a logical conclusion.

India has repeatedly said that Pakistan’s presence in the FATF’s grey list vindicates its position of not doing enough against terror financing.