Comply with action plan by October or get downgraded to blacklist; FATF tells Pakistan
New Delhi, June 21: The Financial Action Task Force has told Pakistan in clear terms that it would be blacklisted if it does not comply with the action plan by October 2019.
The FATF which monitors terror funding is meeting at Orlando on June 20 and 21. During the meeting it would track the progress by Pakistan on a 27 point action plan.
A final decision on whether Pakistan would placed on the grey list or downgraded to the black list would be taken in October when the FATF meets for its plenary in Paris.
Sources tell OneIndia that the FATF pointed out that Pakistan had not done much and if the action plan is not complied by October 2019, it would be downgraded to the grey list.
In April the FATF had asked Pakistan to implement a new set of constraints in its crackdown against terror funding, including documenting and regulating all gold markets.
One key development in recent times is the UN listing of Jaish-e-Mohammad chief, Maulana Masood Azhar. The first action by Pakistan was to put his brother Rauf Asghar in charge of operations. However with the heat stepping up, Pakistan claimed that Asghar had been placed under arrest.
The FATF on the other hand had asked Islamabad to collect data of all gold markets and restrict the sale and purchase of gold items using cash. The watchdog has also demanded that the country ensure restriction on supply of gold and jewelry to banned outfits and terrorist organisations.
The FATF had urged Pakistan to collect data of all trusts operating across the country as well as their bank accounts on the district level. It has also asked the country to ensure regulation of thousands of registered trust organisations.
Pakistan is under immense pressure both from the US, UK, France and India to act against terror and its funders. The US says Pakistan is not taking action against terror groups like the Haqqani network and the Taliban. Islamabad had denied those allegations.
Pakistan being added to the "list of countries deemed 'high risk' for doing too little to curb terror financing," would have a financial implication for the country. As a result of this inclusion, banks, other lenders and international companies seeking to do business with Pakistan could rethink financial ties, putting a damper on its already struggling economy.