Pak Failing to Curb Money Flow to Hafiz Saeed: Damning FATF Report

File image of Jamat-Ud-Dawa Chief Hafiz Saeed.

(Photo Courtesy: Twitter/@omar_quraishi)

In what was a major setback for Pakistan, the Asia Pacific Group (APG) of the Financial Action Task Force (FATF) stated on Monday, 7 October, that Islamabad has taken insufficient measures to fully implement UNSCR 1267 obligations against 26/11 mastermind Hafiz Saeed and other individuals associated with LeT, JuD, FIF, among other terror groups.

After analysing Pakistan’s efforts to curb money flows to terrorist and terrorist groups, the APG in the latest report titled ‘Mutual Evaluation Report’ (MER) of Pakistan, urged the country to “identify, asses and understand” its money laundering or terror financing risks, including the risks associated with these groups operating on its soil.

The report read, “Pakistan has not taken sufficient measures to fully implement UNSCR 1267 obligations against all listed individuals and entities — especially those associated with LeT, JuD and FIF as well as the groups,” according to ANI.

It added that Pakistan should implement a comprehensive and coordinated risk-based approach to combating money laundering and terror financing.

The observations are a major blow to Pakistan, which faces the threat of being placed under the FATF's “blacklist.”

In June 2018, Islamabad was placed by the international money laundering watchdog on its “grey list,” and was given a 15-month deadline to implement its 27-point action plan.

The deadline expired in September this year, and the report also strengthens India’s case for the FATF session next week.

During its next meeting between 13 and 18 October, FATF is expected to do a final review of the issue.

(With inputs from ANI)