The Ministry of Interior has issued instructions to the provinces to keep vigil on the fund raising activities of proscribed organisations, discrete or otherwise. The provincial governments have been asked to inform the people that financial assistance to the banned outfits in cash or any other kind is a punishable offence under law liable to imprisonment of 5 to 1o years. The provincial governments have already taken over, as administrative measure, 589 seminaries, schools, dispensaries and hospitals that belonged to banned groups. In all there are 70 plus proscribed organisations.
The administrative actions alone will not create fairly soft image of Pakistan in the comity of nations after the United Nations Security Council sanctions committee resolution declaring Jaish Muhammad chief Masood Azhar as global terrorist. An effective legal framework would be needed backed by the strong political will and robust administrative mechanism to curb money laundering and terror financing. India considers that UN sanctions committee declaration as its diplomatic victory over Pakistan and has showed the intention to use it as tool for blacklisting the latter by the Financial Action Task Force (FARF). Next meeting of the global watchdog on money laundering and terror financing will be held in Paris in the middle of this month to evaluate Pakistan’s progress on 27 points action plan as the deadline for full compliance has been set September this year. The FATF put Pakistan on grey-list in June last year and India wants to downgrade its position to the blacklist.
The Finance Minster of India Arun Jaitley told media the other day that FATF will be requested to put Pakistan on the black-list of countries that have weak money anti-money laundering and counter terror financing regimes. He said that Pakistan has failed to meet the international standard of financial crimes, adding that, India is keen to downgrade Pakistan on the FATF list. Prime Minister Imran Khan is watchful of the Indian hostile move in the next meeting of the global watch dog which may invite economic sanctions. However, Pakistan’s Ambassador to the United States Asad Majeed Khan has downplayed the UN sanctions committee decision and expressed the hope that it will not have negative repercussions for Pak-US bilateral relations.
On the other hand Pakistan has shown deep concern over the statement of Indian Finance Minister, asking FATF to place Pakistan on blacklist. In response Foreign Office spokesman Dr. Mohammad Faisal said that it reveals that the global illicit financing watchdog is being politicized by the neighbouring country. India will certainly mount diplomatic pressure on the pretext of money laundering and terror financing. Time of India has used the allegations of Bilwal Bhutto Zardari as ammunition against Pakistan which he made repeatedly against some federal ministers without naming them, notwithstanding the mega money laundering probe against the PPP leadership for using fake bank accounts which is serious financial crime.
Certain provisions of the legislation titled Protection of Economic Reforms Act enforced by the first Nawaz Sahrif government significantly diluted the regulatory powers of the Central Bank to curb money laundering through banking channels. The legislation is still intact in its original form. Federal Minister for Law and Justice hinted at a rationale for amendment in it in a current affairs programme of a private TV channel last month. It is now high time that legal lacunae of this Act are properly addressed and proactive diplomacy is launched to counter the likely hostile moves of India at the FATF meetings.
