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Even if Pakistan remains in grey list, it would lose 10 billion USD annually

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Google Oneindia News

New Delhi Oct 14: Will Pakistan remain in the grey list or will it be downgraded to the blacklist?

All indications are that Pakistan would stay on in the grey list with support from China and Malaysia. Though it has been recommended by the Asia Pacific Group that Pakistan should be downgraded to the blacklist, the FATF is most likely to keep Pakistan in the grey list.

Even if Pakistan remains in grey list, it would lose 10 billion USD annually

Currently, the Financial Action Task Force (FATF) is headed by China. Further, the members of the FATF are Malaysia, Turkey and Saudi Arabia.

US reminds Pakistan about its obligation to end arrest and release approach on terroristsUS reminds Pakistan about its obligation to end arrest and release approach on terrorists

In all probability, China, Turkey and Malaysia are likely to vote against the downgrade and this would ensure that Pakistan remains in the grey list. At the FATF, Pakistan would require a minimum of three countries to vote in its favour to prevent it from being blacklisted. However, remaining on the grey list is not something for Pakistan to tom-tom about. It will lose 10 billion USD annually if it remains in the grey list. If moved to the blacklist, Pakistan would be slapped with harsher financial sanctions.

In order to move out of the grey list, Pakistan would need at least 15 of the 36 FATF's members' votes. It would also require a minimum of 3 votes to keep itself out of the blacklist.

Pakistan was placed on the grey list by the Paris based watchdog in June last year. It was told to either act on terror funding or face the risk of being moved to the blacklist.

The Asia Pacific Group of the Financial Action Task Force (FATF) which decided to place Pakistan in the Enhanced Expedited Follow Up List as it failed to meet its standards said that the country has not taken enough action to implement sanctions against Lashkar-e-Tayiba chief, Hafiz Saeed.

No escaping: Pakistan has failed to curb terror funding, may remain in greylistNo escaping: Pakistan has failed to curb terror funding, may remain in greylist

"Pakistan has not taken sufficient measures to fully implement UNSCR 1267 obligations against all listed individuals and entities - especially those associated with Lashkar-eTayyiba (LeT)/Jamaat-ud-Dawa (JuD), and Falah-i-Insaniat Foundation (FIF) as well as the groups'leader Hafiz Saeed," the Mutual Evaluation Report of Pakistan adopted during the annual meet in Canberra read.

In June, the joint group of the Asia Pacific Group in its assessment had found that Pakistan's compliance to act against 8 terror groups which include the Jaish-e-Mohammad and Lashkar-e-Tayiba has been unsatisfactory. The report urged Pakistan to do more against these groups before the FATF comes up with its final decision.

The report states that stringent action should be taken against groups such as the Lashkar-e-Tayiba, Jaish-e-Mohammad, their financial entities, Haqqani Network, Al-Qaeda and Da'esh.

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