Pakistan's 'irresponsible attitude' and 'flawed diplomacy' at Financial Action Task Force (FATF) meeting has prompted the anti-money laundering body to reconsider its decision of not placing Pakistan on its 'grey list.' This was stated by a senior official privy to developments who further stated that as per FATF protocol member countries and participants of the meetings are bound not to disclose information about the discussions and decisions made at the FATF forum.
The official confirmed to Business Recorder that Pakistan will work with the FATF to finalise a plan of action till May after which the anti-money laundering body will announce its final decision in June. This was confirmed by a tweet from Minister of Defence Khurram Dastigir who added that the government cannot comment on the matter at this stage.
"We have officially complained to FATF on Indian media speculations which they claim are on the basis of information provided by "top Indian government sources," he tweeted. India is a member of FATF. The military sources, however, said that Pakistan still has three months of time period and things can be changed if the government submits its action plan against terror financing. Pakistanis have given more sacrifices than any other country to fight terrorism and the world must acknowledge this, they said.
About inclusion of Pakistan in the grey list, the military officials has said this pressure is coming from India and US, whereas China, four countries of GCC and Turkey are on the side of Pakistan.
Whereas, ISPR spokesperson said that ISPR has nothing on the subject as it is more relating to the foreign office and finance ministry. When asked about its effect on the military operations, he said it won't effect the operations Pakistan army is conducting against the terrorism. Furthermore, military will still maintain the military relationship with these countries.
Dr Ashfaque Hasan Khan, former adviser to Finance Ministry, told Business Recorder on Saturday that Foreign Minister Khawaja Asif's Wednesday tweet regarding success of the country's diplomacy at the FATF forced the members to revisit Pakistan's attitude towards implementation of anti-money laundering and counter terror-financing laws.
"A motion was moved against Pakistan on Thursday citing its irresponsible attitude to take measures to curb anti-money laundering," he said, adding the FATF also took serious notice of the release of information by Khawaja Asif through a tweet.
"It is against the protocol of the FATF to release information of the sessions," he said, adding the task force announces its decision only through a press release at the end of the session.
He said the implementation of anti-money laundering and counter terror-financing laws across the world has been strengthened and the cost of doing business in Pakistan will increase manifold if placed on the watch-list which may entail a downgrade of our credit rating, higher transaction costs and foreign direct investment may be hampered.
Talking to the media on Saturday, Interior Minister Ahsan Iqbal said Pakistan has made all out effort to combat terrorism and will continue doing so. "We are fighting terrorism not to please the US, but for our own benefit," he said.
The Minister also downplayed negative impact of the so-called grey list, saying: "It is wrong to speculate that this will have severe economic consequences for the country."
According to a statement issued by the FATF at the conclusion of its session on Friday, Pakistan does not feature on the list of countries with strategic deficiencies posing a risk to the international financial system.
The list now features nine countries: Ethiopia, Yemen, Iraq, Syria, Serbia, Sri Lanka, Trinidad and Tabago, Vanuatu and Tunisia, while Bosnia and Herzegovina have been moved to the white list.
The FATF is an UN-sanctioned inter-governmental body established in July 1989 by a Group of Seven (G-7) Summit in Paris. Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The FATF currently comprises 35 members and two regional organizations, representing most major financial centres in all parts of the globe along with observer countries, organizations and associate members. Israel and Saudi Arabia are FATF observers while Pakistan is member of Asia Pacific Group on Money Laundering and associate member of the FATF.