Black and grey: On terror funding and Pakistan | The Hindu

2020-01-28 | 1 minute

Context: Recently, a meeting of the Asia Pacific Joint Group was held in Beijing to scrutinize stricter actions that Pakistan has taken against terror financing and money laundering.


  • In 2012, FATF placed Pakistan on a grey list. After Peshawar School massacre of 2014, Pakistan announced the National Action Plan to fight terrorism.
  • In 2015, Pakistan was moved out of the grey list. In 2018, Pakistan was again added to grey list and given a list of 27 actions against money laundering and terrorism financing.
  • In October 2019, Pakistan took five out of total 17 actions. Beijing meeting of Asia Pacific Group (APG) from January 21 to 23, 2020 found that Pakistan has made progress on 14 out of total 27 actions.
  • Final decision about placing Pakistan on Black list from Grey list will be taken at the plenary meeting of Financial Action Task Force (FATF), which will be held from 16-21 February 2020.

Important points from list of 27 actions by FATF: These 27 actions included steps like preventing funding to terrorists listed under UN Security Council Resolution 1267. They included Hafiz Saeed and the LeT, the Jaish-e-Mohammed (JeM), etc. The 27 actions also involved legal actions against these groups and changing the law in Pakistan as per international standards for money laundering and terrorism financing.

Opinion on Pakistan’s progress in achieving 27 actions by FATF: At Beijing Meeting of Asia Pacific Group (APG) of FATF, it was found that Pakistan has achieved progress on 14 out of 27 points. This shows that Pakistan has made progress on its efforts to prevent blacklisting by FATF. India has been in favor of more scrutiny of state-sponsored terrorism, including by Pakistan. During the period Pakistan remained in Grey list since 2019, Pakistan has chargesheeted Hafiz Saeed in terror financing cases and Jaish-e-Mohammed (JeM) Masood Azhar was included in the list of UNSC 1267. Outcomes of FATF are not free from geopolitical and bilateral influences. US and its allies may give importance to concluding talks with Taliban by the help of Pakistan. China, which is currently holding the presidency of FATF may help Pakistan from getting blacklisted by FATF.   


Financial Action Task Force (FATF):

  • It was formed in 1989.
  • Its aim is to combat money laundering and terrorism financing.
  • It maintains two lists
    • FATF blacklist (Non-Cooperative Countries or Territories)
    • FATF greylist (Other monitored jurisdictions)
  • Currently, there are two countries on FATF blacklist. They are North Korea and Iran.
  • There are twelve countries on FATF greylist.
  • There are 37 full member nations and two full member regional organizations (European Commission and Gulf Cooperation Council) in FATF. So, FATF consists of 39 full members.