Pak Placed On Terror Financing Watch List As China Withdraws Objection: Sources

New Delhi:  In a huge embarrassment for Pakistan, sources say that the global money laundering watchdog FATF or the Financial Action Task Force has put Islamabad back on its terrorist financing watch list, the move that could seriously hurt Pakistan's economy.

An official announcement is expected later today. The 35-member body works by consensus and even China, which was supporting its closest ally till now, withdrew its objections after intense pressure from the US and others.

Earlier this week, Pakistan Defence Minister Khawaja Asif had claimed a victory, saying that there wasn't a consensus against the country. Indian officials had called the claim premature.

The resolution against Pakistan was moved by the US, which wants to put pressure on Islamabad for not doing enough to comply with anti-terrorist financing and anti-money laundering regulations.

The move is part of a broader US strategy to pressurise Pakistan to cut its links to terror groups in Afghanistan.

The move is expected to inflict serious damage on Pakistan. Being placed on the FATF watch list brings extra scrutiny from regulators and financial institutions that will be wary of doing business with Pakistani banks.

Comments

Pakistan was on the watch list between 2012- 2015 as well but only for money laundering.

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terror financing and other related threats to the integrity of the international financial system.