Pakistan appears to be grossly under-delivering on a 27-point action plan to help avoid a “blacklisting” prepared by the Financial Action Task Force (FATF), according to sources monitoring its actions against terrorist financing. Doing so indicates that Islamabad has given six out of 27 points so far. Blacklisting by the FATF is to prevent Pakistan’s access to international finance.
Pakistan is currently based on the FATF list gray list ‘and is in the FATF plenary meeting in Paris next month for a final review of its position.
Sources monitoring the implementation of the FATF action plan by Pakistan said that Pakistan has identified only five of the 100 UN-designated terrorists located within its territory. The five include Hafiz Mohammad Saeed, owner of Lashkar-e-Taiba / Jamaat-ud-Dawa / Falah-e-Insaniyat.
Saeed was arrested by Pakistani authorities in July on charges of terrorist financing. He has since been in custody.
According to reports coming from Pakistan, more than 900 properties including madrasas and dispensaries have been confiscated for terrorist financing. Of these, 750 properties are allegedly associated with Falah-e-Insaniyat, while 150 are associated with Jaish-e-Mohammed.
However, Pakistan remains to identify the source of funds behind the seized assets or to file any case against their owners. Also, none of the seized assets have active terrorist facilities such as weapons, weapons / explosive dumps or terrorist training camps.
A year after the FATF put Pakistan on the gray list, 23 terrorist funding cases were registered in July and asked to provide a 27-point anti-terror financing plan to avoid the blacklist. About 65 active terrorists have been named in these cases.
While Pakistan is making some efforts to tighten on terror financing and money laundering, it may fall far short of FATF standards and leave Islamabad at high risk of being blacklisted. Pakistan was given 15 months to work on several issues simultaneously. It decides before the FATF plenary meeting whether it should be put on the gray list or blacklisted.