The 바카라Stern warning바카라 to Pakistan by the Financial Action Task Force (FATF) during their plenary session in Paris (October 16-18) had occupied last week바카라s media space in India.
Reports said that Pakistan, which was retained in the 바카라Grey List바카라, was 바카라warned바카라 on their poor performance in curbing terrorist financing and that it would be put on 바카라blacklist바카라 and 바카라sanctioned바카라 if no improvement is shown by February 2020.
Some said that Pakistan바카라s economy would collapse even if it continues in the 바카라Grey List바카라 with difficulties of getting help from national and multilateral sources. In reality, FATF did not place any country in 바카라grey바카라 or 바카라black바카라 lists. These two expressions do not find place in FATF 바카라Public Statement바카라 of October 18th.
That must be a media assumption as the Paris based OECD, which shares office space with FATF uses the expression 바카라black list바카라 in compiling 바카라Uncooperative Tax Havens바카라 list. FATF, however, calls them 바카라Non-Cooperative Countries or territories바카라 (NCCTs).
There is a lot of misunderstanding in India about FATF. First, it is not a legally empowered international body to impose sanctions like UN Security Council or European Union. G-7 established FATF in 1989 only as an expert inter-governmental body for setting global standards on anti- money laundering (AML), countering financing of terrorism (CFT) and proliferation of Weapons of mass destruction (WMD).
Their mandate, revised on 12 April 2019, permits them to develop methodology for setting global policies and standards to guide different nations and for evaluating their progress.
Secondly, their monitoring, called 바카라Mutual Evaluation Report바카라 (MER), is not adversarial but cooperative with the assessed country바카라s participation and spot visits to check technical compliance and effectiveness on AML and CFT.
It is also transparent since draft reports are vetted twice by the assessed country for further comments, leaving no role for third party lobbying. The assessed country has the right to see the final report two weeks before the plenary and also to make the opening statement. The Plenum, usually held in February, June and October 바카라evaluates바카라, 바카라re-rates바카라 or postpones final findings if any point needs further check.
The plenary session, chaired by FATF President Xiangmin Liu from China, who has a two-year term was attended by 800 delegates. The agenda had three segments: major strategic initiatives for countering virtual assets industry like 바카라Stablecoins바카라, leveraging digital identity, 바카라mutual Evaluation and follow up바카라 of assessed countries and 바카라other strategic initiatives바카라.
Sixteen countries, besides Pakistan, were discussed for different reasons: 바카라MERs바카라 of Russia and Turkey, 바카라follow up바카라 of Norway, Spain, Denmark, Ireland, Singapore, 바카라deficiencies바카라 of Brazil, 바카라stopping monitoring바카라 of Ethiopia, Sri Lanka, Tunisia, 바카라monitoring바카라 of Iceland, Mongolia, Zimbabwe, 바카라addressing deficiencies바카라 of Pakistan, Iran and 바카라Public Statement바카라 of N.Korea and Iran.
바카라Public Statement바카라 is the most significant cautionary observation by FATF advising members on allying 바카라countermeasures to protect international financial system from the substantial money laundering or financing of terrorism risks from countries mentioned바카라.
Since February 2016, North Korea and Iran were consistently in the 바카라Public Statement바카라 for not abiding by FATF standards. In that year, Iran was placed as number one indicating more seriousness than N. Korea.
The position was reversed in June 2016 when N. Korea went up in the list. It was the only one highlighted while Iran showed improvement by accepting FATF 바카라action plan바카라. The same position continues even in October 2019 but Iran has been given an extension till February 2020 to adopt full measures.
It follows that Pakistan, which has not yet reached the 바카라Public Statement바카라 stage has been considered a lesser risk than N.Korea or Iran. The narrative begins with Pakistan바카라s commitment to work with FATF but adds that it had addressed only 5 of the 27 items.
After expressing 바카라serious concern바카라 it 바카라urged바카라 Pakistan to 바카라Swiftly바카라 complete its full action plan by February 2020. Otherwise, FATF would take action 바카라which could include the FATF calling on its members and urging all jurisdictions to advise their FIs (Financial Institutions) to give special attention to business relations and transactions with Pakistan바카라.
To sum up, there is no reason to believe that Pakistan, despite its poor record, would not be given further extensions like Iran and saved from the brink.
(The writer is a former Special Secretary in the Cabinet Secretariat. Views expressed are personal)
