Financial Action Task Force has decided to put Pak back on its terrorist financing watch list
The global money laundering watchdog FATF or the Financial Action Task Force has decided to put Islamabad back on its terrorist financing watch list, the move that could seriously hurt Pakistan's economy.
The official statement by the task force at the end of its meetings makes no mention of Pakistan but diplomatic sources say Islamabad has been put on what's called the Grey List for not doing enough to crackdown on terror and that this will come into force in June when the body meets next.
The resolution against Pakistan was moved by the US which wants to put pressure on Islamabad for not doing enough to comply with anti-terrorist financing and anti-money laundering regulations.
The move is part of a broader US strategy to pressure Pakistan to cut its links to terror groups in Afghanistan.
The move is expected to inflict serious damage on Pakistan. Being placed on the FATF watch list brings extra scrutiny from regulators and financial institutions which will be wary of doing business with Pakistani banks
Pakistan was on the watch list between 2012- 2015 as well but only for money laundering.
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF 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.