Bharat SainiLast Updated on April 26, 2017 by Bharat Saini
Pakistan had launched a crackdown on the terror outfit Jama’at-ud-Da’wah (JuD) and affiliates and put Hafiz Muhammad Saeed and his four accomplices Abdullah Ubaid, Zafar Iqbal, Abdur Rehman Abid and Qazi Kashif Niaz under house arrest in Lahore in January, 2017; under pressure from the Financial Action Task Force (FATF)’,only to fulfil international obligations; as JuD, which is part of the Lashkar-e-Taiba (LeT), has renamed itself as Tehreek Azadi Jammu and Kashmir (TAJK), days after house arrest of its chief Hafiz Saeed, the Mumbai terror attack mastermind.
FATF, International terror finance watchdog, is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions with the objectives to set standards and promote effective implementation of Legal, Regulatory and Operational Measures for Combating Money Laundering, Terrorist Financing and other related threats to the Integrity of the International Financial System.
FATF has developed international standards; the FATF Recommendations, for combating money laundering, financing of terrorism and proliferation of weapons of mass destruction; that set out the essential measures countries should have in place to:
- Identify the risks, and develop policies and domestic coordination;
- Pursue money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction;
- Apply preventive measures for the financial sector and other designated sectors;
- Establish powers and responsibilities for the competent authorities g., investigative, law enforcement and supervisory authorities and other institutional measures;
- Enhance the transparency and availability of beneficial ownership information of legal persons and arrangements; and
- Facilitate international cooperation.
The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse. FATF Plenary, the decision making body, meets three times a year.
FATF has advised Pakistan to demonstrate that it has blocked financing routes of JuD, JeM (Jaish-e-Mohammed) and their affiliates and virtually put the country on a three month notice to show permanent credible action on queries raised against it. The new Donald Trump administration is also clear that Islamabad would have to satisfy FATF queries. The fallout of non-compliance will be serious for Pakistan, which runs the risk of being placed in the category of jurisdictions with serious deficiencies in adhering to global standards on combating terror finance and check money-laundering, making them untrustworthy in the international financial system.
