Terror finance watchdog warns Pakistan, tells it to block JuD/JeM finances

The Financial Action Task Force (FATF), which is an international terror finance watchdog, has put Pakistan on a three-month notice to block financial routes of Jamaat-ud-Dawa, Jaish-e-Mohammed and their affiliates.

Failing to do so, FATF has warned the results will not be in favour of Pakistan as there is the risk of being placed in the category of jurisdictions with serious deficiencies in adhering to global standards on combating terror finance and check money-laundering.

FATF has a process of issuing public statements on countries with deficiencies, making them ‘untrustworthy’, almost a virtual ‘no go’ in the international financial system.

It was difficult for Pakistan as it had to rally hard to even get these 90 days of breathing space at the just-concluded FATF meet in Paris.

However, the actions against JuD, JeM and its front Falah-i-Insaaniyat, in January last week were a start to a series of efforts to convince the FATF that it was serious in its actions. This culminated in putting JuD founder Hafiz Mohammed Saeed on a travel ban list and in house arrest by January 31.

Reportedly, Pakistan has been given a time until June to show permanent credible action on queries raised against it. The heat increased on Pakistan in the FATF’s October meeting, where it rejected Pakistan’s claims on action against finances of these terror groups and directed its Asia-Pacific Group (APG) to prepare a specific evaluation report on JuD, JeM and Falah-i-Insaaniyat.

Though Pakistan tried to raise diplomatic pressure, but the new Donald Trump administration was clear that Islamabad would have to satisfy FATF queries.