Pakistan doesn’t show understanding of risks posed by terror financing: FATF

Stating that Pakistan has made “limited progress” on curbing money laundering and terrorism financing, the Financial Action Task Force (FATF) Friday said that Islamabad has not demonstrated a proper understanding of the risk posed by terror outfits such as Al-Qaida, Jamaat-ud Dawa (JuD), Jaish-e-Muhammad and LeT.

Stating that Pakistan has made “limited progress” on curbing money laundering and terrorism financing, the Financial Action Task Force (FATF) Friday said that Islamabad has not demonstrated a proper understanding of the risk posed by terror outfits such as Al-Qaida, Jamaat-ud Dawa (JuD), Jaish-e-Muhammad and LeT.

The global terror financing watchdog’s remarks came at its plenary meeting in Paris in the backdrop of deadly Pulwama terror attack. Forty security personnel were killed in the attack claimed by Pakistan-based JeM on February 14.

“Given the limited progress on action plan items … the FATF urges Pakistan to swiftly complete its action plan, particularly those with timelines of May 2019,” the FATF said in a statement. It also said that it would continue to work with Pakistan, which had been hoping to get off a “grey list” of nations with inadequate controls over such activities.

China signals shift: UNSC condemns Pulwama terror attack, names Jaish

Pakistan, which is reeling under an economic crisis, continues to remain in the “grey list”, making it difficult for the country to get international loans.

Pakistan needed to show sanctions were being applied in cases of money laundering and terrorism financing, demonstrate better cooperation between authorities identifying illegal money flows, and enhance support for prosecutors, among other measures, the FATF said in a statement.

Pakistan is under immense international pressure for failing to curb the origin of terror on its soil.

The development comes as India pressed for Pakistan to be kept on the terrorism financing watchlist following the Pulwama attack.

United Nations Security Council (UNSC) has strongly condemned the terror attack on a CRPF convoy in Kashmir. However, signalling a clear shift, China on Thursday signed off on a UNSC statement that “condemned in the strongest terms” the Pulwama terror attack and named Pakistan-based Jaish-e-Mohammad for the “heinous and cowardly suicide bombing”.

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