There are different news reports in international media that Pakistan may be put on the list of Financial Action Task Force’s terror financing watch list. The meeting is due next week in Paris where the members will decide upon a motion put forward by the United States in order to put pressure on Pakistan to influence it to act against terrorists US claims operate from it’s territory. Pakistan has denied the allegations and maintained that it is doing everything to keep terrorists from using it’s territory against all neighbors.
Pakistan is also expected to submit it’s compliance report to the Financial Action Task Force next month and has recently amended it’s laws making it parallel to UN Security council Resolution 1267 which was passed in October 1999. Due to the recent changes in law, any organization or people on United Nation’s Terrorists list will be automatically banned in Pakistan as well and their accounts and properties will freeze immediately, hence, Pakistan just froze Falah I Insaniyat Foundation’s accounts and handed over it’s ambulance and hospital operations to the Red Crescent Society of Pakistan.
Pakistan’s government has been taking strong measures to satisfy the international groups specially FATF to ensure that it does not end up being on the Grey list of FATF has been taking steps towards greater compliance of the UNSC Resolution 1267.
What would it mean if Pakistan ended up on the FATF Terror Financing watchlist?
According to some experts Pakistan will be subjected to higher scrutiny on all cross border transactions and it means that any individual account can be frozen or payments be delayed for Pakistani companies and individuals. It also means that Pakistan will be subjected to higher interest rates if it reached out to international lenders and the Pakistan’s newly booming IT sector will also be effected where a lot of Tech Freelancers and companies depend on foreign remittances. Pakistan’s foreign exchange has a great reliability on foreign remittances and remitters might get skeptical to send money back home because of any increase in fees and or duration of transactions.