Source: ZeeBusiness
The Narendra Modi government plans to suggest placing Pakistan back to the “grey list” at a key meeting of the Financial Action Task Force (FATF) due next month, according to official sources. The FATF is a global financial crime agency. Its grey list contains the names of countries under extensive monitoring until they take clear steps to rectify identified flaws in their financial systems. Inclusion in the FATF’s grey list can potentially limit a country’s access to international loans.
Pakistan has not met the conditions for being taken off the grey list, according to the source.
The news comes at a time when both countries agreed to a ceasefire on May 10, at Pakistan’s request, after the Indian Armed Forces blocked Pakistani military’s attempts to target civilian and military targets on Indian soil.
Pakistan has been on the grey list several times since its entry in 2008.
It was last removed from the list in 2022, with a reminder to Pakistan that it was required to continue working with the Asia Pacific Group towards addressing deficiencies in its Anti-Money Laundering and Counter-Financing of Terrorism (AML and CFT) systems.
In 2018, Pakistan was asked to devise and implement an action plan, including effective steps against United Nations-designated terror outfits, individuals and their associates.
In 2021, the country was again put on the list for failing to address all the problem areas identified previously.
India is set to reportedly send a detailed dossier to the global financial crime watchdog, outlining evidence and concerns regarding the involvement of certain entities and individuals in terror financing and money laundering activities.
Highlighting its findings, India’s dossier will reportedly seek strict scrutiny and action under international protocols.
India is likely to make a strong case against the World Bank’s lending to Pakistan, said the sources.
The multilateral development bank is set to discuss a $20 billion lending package for Pakistan in June.
Pakistan has secured a $7 billion bailout from the International Monetary Fund (IMF) last year, and a new $1.4 billion arrangement this month under a climate resilience fund.
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