WASHINGTON – US along with its ally Britain is moving the Financial ActionTask Force on counter terrorism money laundering to act against Pakistan.
FATF had previously warned Islamabad it could be put back on the watchlistwithout further efforts to crack down on the flow of funds to militants.
Pakistani officials and Western diplomats say that being put on the FATFwatchlist could deal a blow to Pakistan’s economy as it would make itharder for foreign investors and companies to do business in thenuclear-armed South Asian nation.
“If you’re put on a terror watchlist, you’re made to go through all the(extra) scrutiny,” Pakistan’s former counterterrorism chief, Khawaja KhalidFarooq, told Reuters. “It can hurt the economy very badly.”
Officials also fear it would be harder and more expensive for Pakistan toborrow money from international debt markets if it was put on the FATFmonitoring list.
Ismail said the FATF motion focused on Hafiz Saeed, a Pakistan-basedIslamist whom India accuses of masterminding the 2008 Mumbai attacks thatkilled 166 people. That suggested the United States had put forward themotion at India’s behest, he said.
A spokesperson at the U.S. Embassy in Islamabad said the United States was“absolutely not” acting on behalf of India.
State Department spokeswoman Heather Nauert said ”the U.S. has consistentlyexpressed our long-standing concern about ongoing deficiencies inPakistan’s implementation of its anti-money laundering/counterterrorismfinance regime.
“In addition to broader systemic concerns, this also includes Pakistan’snon-compliance with its commitments under UN Security Council Resolution1267,” she added.
Resolution 1267 requires all states to freeze the assets of people andorganizations on a list established by the resolution, including Saeed andhis “Islamic charities.” Washington has designated Saeed a terrorist.
Saeed has repeatedly denied involvement in the Mumbai attacks and says thecharitable organizations he founded and controls have no ties withmilitants.
On Monday, Pakistan announced it had amended its anti-terrorism law to banmilitant groups and organizations that are listed as “terrorists” by theUnited Nations, a move seen to be targeting those charities.
Pakistan’s attorney general, Ashtar Ausaf, told Reuters the law changesapproved by the country’s president were meant to reflect obligations underthe U.N. Security Council charter.
“We have to march with the changing times,” Ausaf said, adding that the newlaws would enable the government to track fundraising activities of all theU.N.-proscribed groups and take punitive action such as freezing theirassets.