New Delhi: Pakistan is on the verge of being penalised strongly for its lack of action against terrorist groups operating from its soil with the Paris-based Financial Action Task Force (FATF) deliberating on placing the country in the “dark gray list" seen as the last warning to improve its record.
Officials attending the ongoing FATF meeting in Paris have indicated that the grouping was dissatisfied with Pakistan’s performance and it was isolated by most members for not doing enough, a PTI report from Paris said. This follows a mutual evaluation report by the FATF’s Asia Pacific Group finding Pakistan fully compliant only on one of 40 recommendations put out by the FATF to curb the flow of finances to terrorists and terrorist organisations.
The final decision of the FATF is expected on 18 October when the meeting concludes.
According to FATF rules, there is an essential stage between “gray" and “black" listing which is referred to as “dark gray" which means a strong warning so that the country concerned gets one last chance to improve, an unidentified official quoted by PTI said.
Mint had first reported on 6 October of the possibility of Pakistan being placed on a “dark gray list" given that Islamabad could muster support from countries likes Turkey, Malaysia and China to avoid being put on the black list. The current black list has Iran and North Korea in it. If put into the black list, Islamabad will find it extremely tough to get financial aid from institutions like the IMF, the World Bank and the European Union, making its already brittle financial condition worse.
The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.