EXPLAINED | 5 Reasons Why FATF Shuns Pakistan Again To Keep It In 'Grey List'

FATF has retained Pakistan in its "Grey List" for failing to satisfactorily investigate and prosecute several leaders and commanders of UN-designated terrorist groups.

(File Photo/ AFP)

New Delhi: In yet another international embarassment for Prime Minister Imran Khan, the Financial Action Task Force (FATF) has kept Pakistan on its "Grey List" as the nation failed to assure the global anti-money laundering watchdog that it has completely ended terror financing on its soil.

According to reports, FATF has retained Pakistan in its "Grey List" for failing to satisfactorily investigate and prosecute several leaders and commanders of UN-designated terrorist groups.

Pakistan was placed in the list of nations under increased monitoring or the "Grey List" in 2018.

The announcement was made after completion of five-day virtual plenary meeting under the German presidency of Marcus Pleyer.

5 Reasons Why FATF Has Kept Pakistan In "Grey List"

1. During the meeting, FATF noted that Pakistan had worked upon and completed 26 out of the 27 actions assigned to it by the multilateral watchdog in the action plan drawn up for the country to tackle money laundering and terror financing.

2. FATF has now asked Pakistan quickly make progress on the one remaining CFT (counter-terrorist financing)-related item by acting upon the terrorist financing investigations and prosecutions against leaders and commanders of several UN-designated Pakistan-based terrorist groups.

3. Pakistan had assured to take stringent action against leaders of terrorist group including Haqqani Network, Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), Jamaat-ud-Dawah (JuD), Falah-e-Insaniyat Foundation, al-Qaeda and Islamic State. 

4. So far Pakistan government has only investigated and prosecuted terrorists associated with LeT and JuD, including LeT founder and Mumbai blast mastermind Hafiz Saeed and few of his aides.

5. The Imran Khan-led government is yet to take action against leaders of the JeM such as Masood Azhar and others who reportedly have strong connections in the upper echelons of power and are linked with deadly terror attacks in the recent past. 

In February 2018, FATF lodged Pakistan in the infamous roster, giving the Imran Khan  government four more months - up to June 20, 2021 - to complete its full action plan.

Pakistan, however, has been trying to convince the financial watchdog that the main roots of the Taliban, the Haqqani Network, al-Qaida, and so-called Islamic State global terrorist groups are based in Afghanistan, with sufficient funds available to them.