The Financial Action Task Force (FATF) has decided to keep Pakistan in Grey List for terror financing. FATF is a watchdog for global terror financing. This is a great setback to Pakistan as it has failed to check the flow of money to terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).
This decision came at the third and final plenary of the Financial Action Task Force, held virtually due to the COVID-19 pandemic. The third plenary was held under the Chinese Presidency of Xiangmin Liu. Pakistan will remain in the Grey List till the next scheduled meeting in October this year. If Pakistan fails to comply with the directives of FATF by October they are under threat of the global body putting them in ‘Black List’ along with North Korea and Iran.
Currently, it will be difficult for Pakistan to get financial help from IMF, World Bank, ADB, and the European Union, thus increasing the problems for the nation which is already poor in finances. A strong Indian delegation with experts on money laundering and terror financing participated in the half-day FATF plenary.
India has been pointing out for quite some time that Pakistan is funding to terror groups like LeT, JeM, and Hizbul Mujahideen, whose main target has been carrying out terror strikes in India, and has requested FATF to take action against Islamabad. The FATF currently has 39 members including two regional organizations- the European Commission and Gulf Cooperation Council.