Written byRamya Patelkhana ·
The global anti-money laundering watchdog, the Financial Action Task Force (FATF), is reportedly going to put Pakistan back on its grey list of nations that fail to prevent terror-financing and money laundering.
China and the Gulf Cooperation Council (GCC) withdrew their opposition to include Pakistan on the watch list of the 35-member body that works on consensus's watch list, said reports.
The resolution earlier faced opposition from China, Turkey, and Saudi Arabia (on behalf of GCC). However, in the final voting round, only Turkey supported Pakistan.
However, FATF is yet to release an official statement.
FATF passed the resolution after reviewing the action taken by Pakistan to crack down on the financing of Jamaat-ud-Dawah (JuD) and Falah-e-Insaniyat Foundation (FIF) - linked to Lashkar-e-Taiba's founder Hafiz Saeed.
These groups are on the list of organizations sanctioned by the United Nations Security Council.
Going back on the grey list would be an "embarrassment" for Pakistan; it could damage its economy, too.
Even before the final vote, Pakistan made last-minute efforts to make the international community believe that it was cracking down on Saeed-linked JuD and FIF.
Pakistan said its Anti-Terrorism Act was amended to ban the sanctioned-groups, adding it also took control of several centers, healthcare facilities, dispensaries, etc. run by JuD and FIF.
However, it didn't say anything about acting against LeT founder Saeed.
Pakistan reportedly lobbied Western countries for support; it even asked Russia to stop its inclusion in the FATF watch list. However, the Western powers urged other member nations to back the resolution, and they were successful in the final vote.
If a country is included on the global money-laundering watchdog's grey list, it will lead to tighter scrutiny of its transactions from regulators and global financial organizations. If Pakistan is added to the list, doing business, there could become difficult.
Pakistan was on the FATF grey list earlier, too. It was included on the watch list between 2012 and 2015 for money laundering.
Saudi Arabia had initially backed Pakistan as the latter recently announced that it would send over 1,000 military troops to Saudi, doubling the number of its troops there, for training the kingdom's forces. Pakistan already has deployed 1,500 troops in Saudi Arabia.
The resolution for adding Pakistan back to FATF's watch list was moved by the US. It wants to pressurize Pakistan to act against terror-financing and money laundering as the US claims Pakistan isn't doing enough to counter such activities.
The move is also reportedly part of the US's broader strategy for forcing Pakistan to sever its links to the terror outfits in Afghanistan.
Love World news?
Subscribe to stay updated.