India is likely to seek bringing back Pakistan under the ‘Grey List’ of Financial Action Task Force at the October meeting of the Paris-based antimoney laundering (AML) and counter-terrorist financing (CTF) watchdog, according to a TOI report, which added that New Delhi might cite video and other evidence of Islamabad showcasing its continuing its support to terror outfit.
FATF members removed Pakistan from the 'Grey List' in October 2022 after receiving satisfactory assurance on implementation of a 34-point action plan that included initiating legislative and operational reforms, including AML/CTF mechanisms, on enhanced monitoring of suspicious transactions and politically exposed persons.
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What happens to nations placed under 'Grey List'?
Countries that are placed under the 'Grey List' of FATF face increased monitoring and are subjected to periodic review “to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing”, according to the TOI report.
Such nations may also face difficulties in accessing funds from global financial institutions.
If India pushes Islamabad's 'Grey List' placement for being home to jehadi groups behind sensational acts of terrorism in different parts of world, it would be an interesting move to watch. Pakistan has recently placed itself as a peacemaker in the ongoing US-Iran war trying to mediate a ceasefire agreement between the two nations.
The report added that New Delhi seems to be keen to exert pressure on the global counter-terrorist financing watchdog to make Pakistan accountable to continuing proliferation of non-state actors within Pakistani territory and use of their financial system for terror activities, especially with the appointment of Vivek Agarwal, secretary in the culture ministry, as vice-president of FATF.
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Citing social media videos, TOI reported that many senior Pakistan army and intelligence officials were seen in visuals after Operation Sindoor, participating in funerals of terrorists killed in the operation.
Besides other key evidences, the footages where state actors are seen participating in gatherings of terror outfits can be produced before the next plenary of FATF to bring back Islamabad under enhanced monitoring, or in the ‘Grey List’.
