China fails to fool FATF body on Pakistan’s terror financingJuly 9, 2015
India has blocked a Chinese maneuver within the Asia Pacific Group on Money Laundering to white-list Pakistan.
That would be the same Pakistan that created the Taliban, harbored Osama bin Laden, and is probably protecting terrorist fat cat Dawood Ibrahim. Pakistan funnels millions of dollars through its ISI spy service to terrorist and militant groups in Afghanistan, Kashmir, and beyond. Pakistan is well-known for corruption, graft, and slipshod tax administration. China sought to shield Pakistan from any scrutiny of its abysmal counter-terror finance and anti-money laundering programs purely for geopolitical purposes. Kudos to India for keeping the pressure on.
From TNN on June 30 (hat tip @TerrorismWatch):
India blocks China’s bid to save Pakistan on terror finance scrutiny
NEW DELHI: Pakistan’s enforcement of UN financial sanctions against terrorism will be closely monitored by Financial Action Task Force (FATF) through its associate body, the Asia Pacific Group on Money Laundering (APG), after India successfully blocked China’s attempt at a recent FATF meet in Brisbane to save non-FATF member Pakistan from such scrutiny.
FATF is a policy-making body whose objectives include setting standards to combat money laundering and the financing of terrorism and supporting implementation of these standards. APG on money laundering, somewhat of a mini-FATF of which Pakistan is a member, is committed to the effective implementation and enforcement of standards set by FATF.
According to sources in the government, India, with the support of allies like the US, managed to derail China’s bid which was backed by Australia to shield Pakistan on terror financing. The FATF meet agreed with India’s argument that Pakistan, despite not being part of FATF, was part of APG which works in close collaboration with FATF, and its enforcement of targeted financial sanctions against terrorism should be subject to monitoring by FATF through the APG.
At the FATF meeting last week, India and the US spoke up against Pakistan’s lack of conviction in implementing anti-terror financial sanctions by freezing assets or attaching properties of 26/11 masterminds Hafiz Saeed and Zakiur Rehman Lakhvi and 1993 Mumbai blasts accused Dawood Ibrahim etc. China, however, argued that Pakistan was doing enough and reporting on the action taken to APG.
India was not satisfied with the report submitted by Pakistan to APG as it listed only unnamed accounts, without identifying their origins and their implications for the group’s functioning. This was despite India furnishing enough details on Falah-e-Insaniyat, linked to LeT and Jamaat-ud-Dawah, publicly raising funds. Similar fund-raising at Hafiz Saeed’s rallies was also highlighted.