Pakistan's Tactics to avoid FATF Grey List - Burning Issues

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Financial Action Task Force (FATF)

FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001, its mandate was expanded to include terrorism financing.
Since 2000, FATF has maintained
the FATF blacklist (formally called the “Call for action”) and
the FATF Greylist (formally called the “Other monitored jurisdictions”)

June, 2018

Pakistan was placed on the grey list by the FATF in June 2018 and was given a 27-point action plan to complete it.
The FATF continuing Pakistan in the ‘Grey’ list means its downgrading by IMF, World Bank, ADB, EU and also a reduction in risk rating by Moody’s, S&P and Fitch.

October 2019

The FATF had decided to keep Pakistan on its grey list for failure to curb funding to terror groups Lashkar-e-Taiba (LeT), Jaish-eMohammed and others.

Feb 2020

The FATF had decided to retain Pakistan in its ‘Grey List’ and warned the country of severe consequences if it fails to prosecute and penalise those involved in terror financing.

Latest Strategy by ISI

Indian Security experts speculate that to evade FATF blacklisting, meet the remaining 13 pointers and continuing to incite terrorism in the Kashmir, Islamabad had covertly brought indigenous terror outlets into existence.

‘The Resistance Front’ (TRF)

The TRF, has an active online presence and is actively supported by Pakistan and consists of existing terror groups Hizbul Mujahidin, Jaish-e-Mohammad, LeT and Al-Badr, informed sources in the security establishment.

Why is Pakistan doing this?

The assessment is that these actions are designed to give the ISI more wriggle room within Pakistan that has been staring at a possible blacklisting at the FATF (पाकिस्तान FATF में संभावित काली सूची में डाला जा सकता है

Why is Pakistan doing this?

“The word resistance could appeal to Western capitals (शब्द प्रतिरोध पश्चिमी राजधानियों के लिए अपील कर सकता है है), a strategy which was adopted in Myanmar by the ISI while promoting extremism among Rohingyas”

Why is Pakistan doing this?

Another security official said that the larger point appears to be the projection of terrorism as a resistance movement run by Kashmiris आतंकवाद के बजाय कश्मीरियों द्वारा चलाए जा रहा प्रतिरोध आन्दोलन and described the TRF as more of an online projection project that would not necessarily change tactics on the ground

Why is Pakistan doing this?

TRF has also issued a statement on the ex-HM commander joining the outlet. TRF said “Commander Abass left Hizb because he also does not agree with HM for killing Kashmir police and
Now, brother Abbas is with us and we will fight with anyone who kills or hurts any Kashmiri.”

Advantage for Pakistan

If the majority of the militants operating in Kashmir leave Pakistan-sponsored groups like HM, JET, JeM and join the ‘indigenous’ TRF, Islamabad could claim clamping down on these terror organizations, as required by FATF, and hope to be removed from the Greylist.

Plus Covid-19

Pakistan gets a four-month respite for meeting a deadline set by the (FATF) to counter terror financing as FATF announced a temporary suspension of its activities because of the COVID-19 crisis.