India blocks China’s bid to save Pakistan on terror finance scrutiny

Posted on June 30, 2015 0 Comments23
NEW
DELHI: Pakistan’s enforcement of UN financial sanctions against
terrorism will be closely monitored by Financial Action Task Force
(FATF) through its associate body, the Asia Pacific Group on Money
Laundering (APG), after India successfully blocked China’s attempt at a
recent FATF meet in Brisbane to save non-FATF member Pakistan from such
scrutiny.


FATF is a policy-making body whose objectives include
setting standards to combat money laundering and the financing of
terrorism and supporting implementation of these standards. APG on money
laundering, somewhat of a mini-FATF of which Pakistan is a member, is
committed to the effective implementation and enforcement of standards
set by FATF.


According to sources in the government, India,
with the support of allies like the US, managed to derail China’s bid
which was backed by Australia to shield Pakistan on terror financing.
The FATF meet agreed with India’s argument that Pakistan, despite not
being part of FATF, was part of APG which works in close collaboration
with FATF, and its enforcement of targeted financial sanctions against
terrorism should be subject to monitoring by FATF through the APG.



At the FATF meeting last week, India and the US spoke up against
Pakistan’s lack of conviction in implementing anti-terror financial
sanctions by freezing assets or attaching properties of 26/11
masterminds Hafiz Saeed and Zakiur Rehman Lakhvi and 1993 Mumbai blasts
accused Dawood Ibrahim etc. China, however, argued that Pakistan was
doing enough and reporting on the action taken to APG.


India
was not satisfied with the report submitted by Pakistan to APG as it
listed only unnamed accounts, without identifying their origins and
their implications for the group’s functioning. This was despite India
furnishing enough details on Falah-e-Insaniyat, linked to LeT and
Jamaat-ud-Dawah, publicly raising funds. Similar fund-raising at Hafiz
Saeed’s rallies was also highlighted.


An arrangement was worked
out at FATF meet wherein Pakistan’s action on terror financing will be
evaluated by APG, which will then refer the issue to the FATF.

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