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FATF Greylist: Any Way To Get Out!

Michael Samuel

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Money laundering (concealment of illegally gained money then appear legal) and terror financing (activities which provide finance to individual terrorists or militant groups) nowadays is a big and dire problem. Many countries are engulfed in these problems and trying to get rid of it. Many steps have been taken to overcome these problems but all were in vain. When realized that it is a hard nut to crack a force was set up to root out terror financing and money laundering known as Financial Action Task Force (FATF). Financial Action Task Force commonly known as FATF is a global task force formed in 1989. This task force consists of 37 countries, with its headquarter in Paris, France. It is currently under the presidency of Mr. Marshall Billingslea who was appointed on July 1, 2018. Three main FATF observers are Indonesia, Israel, and Saudi Arabia. The main purpose of this force is to develop policies to combat money laundering and terror financing.

FATF has provided a series of recommendations which can be followed to stop money laundering and terror financing. Countries are monitored worldwide by the task force to examine if they have acted upon its recommendations to restrain the flow of funds to banned organizations (mafias, terrorist outfits, militant groups etc.). Since this is a serious threat at an international level to the integrity of an international financial system, this task force laid down the foundation of a list of those countries which are affected by or who are involved in money laundering and terror financing is known as greylist.

Pakistan’s history in the FATF greylist

It was 2009 when first time Pakistan was put into the Grey List. At that time Government of Pakistan People Party (PPP) was on the run. Later, the name of Pakistan was excluded from the greylist. After that, Pakistan’s name was again included in greylist in 2012 for the second time. In 2013 government of PPP ended and Pakistan Muslim League-Nawaz’s (PML-N) supremo Nawaz Sharif’s Government tenure started. Amid inclusion of Pakistan’s name in the grey list, Chief of Army Staff (COAS) launched an operation on June 15, 2014, against terrorism and militant groups called Operation Zarb-e-Azb. As this operation was on the run to hunt down the terrorists, world’s fourth-deadliest Army Public School (APS) massacre happened after which operation against terrorists intensified more. This operation helped a lot in a decimation of terrorism. When witnessed by FATF watchdogs that terrorism has been reduced to the much extent, name of Pakistan was excluded from the greylist in 2015.

As we know after 2015, terrorism has reduced more as compared to previous years and can be seen that it has almost vanished in Pakistan then what are the reasons that Pakistan’s name is again included in the greylist?

These were the aggressive tweets of Donald Trump in the month of January which pointed out that “the US has foolishly given $33bn to Pakistan to curb terrorism but Pakistan has done nothing in return except lies and deceit. Pakistan has failed to hunt down the terrorist and is providing safe haven to them.”

As a result of Trump’s tweets, a meeting was conducted and a petition was launched in which Pakistan needed three votes to stay out of the greylist and Pakistan did grasp the required number of votes (Turkey, China, and Saudi Arabia) and abstained itself to be placed to the list. After this, Khawaja Asif erupted and tweeted that we have thwarted the US’s agenda to put Pakistan to the list due to which Donald Trump jointly by Modi led Indian Lobby after two or three weeks again pressurized FATF for an unprecedented second discussion on Pakistan. Pakistan again needed three votes to stay out of the list. By then, the US convinced Saudi Arabia to give up its support to Pakistan in return for full membership of FATF. Then there left only two, China and Turkey. China, which is known to be all weather friendly and whose friendship is higher than the mountains, deeper than the ocean informed Pakistan that they are “opting out as they don’t want to lose face by supporting a move that’s doomed to fail” and thus voted against Pakistan. Turkey voted in favor of Pakistan. So, this time only one vote goes in favor of Pakistan and thus Pakistan was officially placed in the greylist on June 28, 2018 regardless of the 26-points action plan formulated by the International Cooperation Review Group (ICRG) of the Asia Pacific Group (APG) which was also submitted to the FATF to choke terror financing, money laundering, ban militant groups including mastermind behind the Mumbai attack Hafiz Saeed-led JuD and its affiliates and totally freeze their assets.

Pakistan is the ninth country to be placed on the Paris based FATF’s grey list while other eight states with strategic deficiencies are Ethiopia, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen. The plan to put Pakistan into the greylist was jointly moved by the US and three key powers of Europe (the UK, France, and Germany) in February. Finance Minister Dr. Shamshad Akhtar represented Pakistan and argued to remove Pakistan from the greylist but they did not hear a word of her sayings.

Consequences of non-implementation of action plan

As being placed on the greylist. It is now worth exploring that what could this mean for Pakistan. How its placement can affect Pakistan’s efficiency at national and international level.

Mainly Pakistan’s inclusivity in greylist can squeeze its economy and could make it harder for the country to meet its ascending foreign financing needs. This could also lead to a downgrade in Pakistan’s debt rating. Pakistan may also suffer a risk downgrade by multilateral lenders like the International Monetary Fund (IMF), Asian Development Bank (ADB), World Bank and European Union (EU). Currently, these are the major risks which are expected can be inflicted on Pakistan.

In case of blacklisted

If Pakistan fails to comply with its 26-points action plan then there is no doubt that no one can save Pakistan to be placed on the blacklist of the FATF which means total disaster of the country. Currently, FATF blacklist features Iran and North Korea.

Being blacklisted means direct sanctions on Pakistan’s major international transactions, imports and exports, foreign loans, can distort its international standing, banks can pull out, can be a fall in foreign currency inflow, further fall in Pakistan’s large current account deficit (CAD), Pakistan’s stock market can fall at a greater speed. These are few disturbing factors for Pakistan if it ends up blacklisted.

In case of a blacklist, above cited sanctions might also result up as a chaos at a national level in Pakistan leaving no jobs for the masses of Pakistan, increase in debts, increase in taxes, inflation and would be directly and constantly scrutinized by FATF’s financial watchdogs. All confidential transaction will go through under watchdog’s surveillance.

By putting all these risks aside, the factual evidence, both historic and current, demonstrates the incorrectness of these mentioned assertions. Pakistan was on the FATF grey list from 2012 to 2015. A period in which Pakistan’s imports and exports remained stable and grey listing did not prove to be a significant barrier to trade.

Recently, a delegation of FATF came to Pakistan to review the implementation of the action plan and asked Pakistan to maximize the penalty and imprisonment period for those who proved to be involved in such offenses.

What to do to get out of greylist?

The only way for Pakistan to get out of the grey list is to focus on the 26-point action plan. Implementation of action plan effectively by taking enforcement action against illegal money and value transfer services (MVTS), control on illicit movement of currency, identifying and investigating terrorist financing activity and target designated persons and entities, and persons and entities acting on behalf or acting at the direction of designated persons or entities, prevention of moving funds to designated terrorists including freezing of their assets (both movable and immovable) and demonstrate enforcement against TFS (targeted financial sanctions) violations.

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South Asia

PTI Government in Pakistan: To full-fill its promise on curbing Corruption

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Big achievements of PTI (Pakistan Tehreek-E-Insaf) Government in Pakistan. Corruption is an international phenomenon, especially among developing and underdeveloped countries. Corruption is a major hurdle in the fight against poverty and development. However, the beneficiary of corruption is still the developed world. The rulers from developing and underdeveloped world, transfer all their black money to developed countries and in the end, developed world enjoy out of their black money.

Pakistan, being a developing country, no exception to this curse. During the last few governments, it was very much visible. Either it was financial corruption of moral corruption, all are equally harmful to the country. Previous few governments, appointed corrupt and unqualified persons on key posts and used them as their front men in corruption.

Some of their front men were an evil genius and committed heinous crimes in such a technical manner that it is very difficult to find out evidence. Either it is fake accounts or various forms of money laundering or in the form of subsidies or government grants, commissions or kickbacks in projects or procurement, bribes or gift, all are the same but with different forms to harm the socio-economic of this country.

It was in the manifesto of PTI, and part of its slogan during the election campaign, to fight against corruption. Prime Minister Imran Khan in his speech on several occasions has promised with the nation that, he will fix all corrupt, irrespective of their status in the society. It is logical to start from the big fish and later on to common corrupt officials at junior levels.

Pakistan’s judiciary and the military are also on the same page and extending full support to the PTI government’s mission to eliminate corruption from this society once for all. The recent arrests are just the beginning of accountability and have to go on a long journey. May it take one term or even next term, but the accountability process must keep on going till the eradication of corruption completely.

Pakistan is under the heavy foreign-debt, worth US Dollars 100 billion approximately. Who took this huge loan? Have they worked out, how to pay back? Have they spent all the loans on the development of Pakistan? Why this loan has not been trickled down impact? Why this heavy loan could not improve Pakistan’s economy? How useful was this loan to common man of Pakistan? Why IMF could not improve the governance of Pakistan? Why IMF failed to improve performance of Pakistan? Why IMF could not give positive advice to Government of Pakistan? The lenders also need to be blamed for lending without any feasibility and failure of IMF packages offered to Pakistan during last one decade or so long. Why few families (rulers) become more rich and country become poorer?

If the sitting governments of that times have been borrowing without any planning or homework or without considering how to pay back, all of them must be held responsible for this heinous crime against the nation. Whether they are inside Pakistan or left the country, they must be arrested and brought back to face justice.

If only a few corrupt families are arrested and asked for the return of looted money, Pakistan can get rid of its major part of foreign-debt. We may not need any bailout package from the IMF or any help from any friendly country. All the looted money must be returned, all the illegal assets must be confiscated and suctioned out. All the recovered money must be used to pay back our foreign-debt.

There is no need to impose additional taxes and duties on the common man. Electricity, Fuel, Gas and consumer products may be kept on the original position. It is illogical that the common man, who is not responsible for the debt and still suffers due to the corruption of rulers.  It is desired, the previous rulers, who have pushed the country into economic chaos, should be held responsible and all damages need to be compensated by them only. There is no need to punish the whole nation for few criminals. Recovery from previous corrupt rulers is very much do-able and very much possible, above all very much desired. There are examples available in the world, how they recovered looted money from their big shots.  Saudi Arabia has done it well. China is a role model to be followed in this regard.  The Chinese government is willing to share its experience and expertise in fighting against corruption.

Our internal resources may be utilized fully to control corruption and recover all black money. Even if there is a need to introduce new legislation, the Government should not hesitate. Masses in Pakistan stands with Government on this issue. The government should move smartly in this direction with full strength and confidence. Public support is already there.  However, if the Government fails to accomplish this task, it may lose popularity.

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Gentlemen’s game or Propaganda? Cricket and the India-Pakistan Voices

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Can a sport be utilized as an effective propaganda tool? And if so, does it ideally mean that government intrusion is a necessity for its success? The answer to this question lies in the reflection of the cricket scenario in Asia. Although recognized as a gentlemen’s game, much can be said about its dichotomy as a weapon in the ever-growing war between India and Pakistan. Cricket propaganda has become a major trend over the past decade between the two countries as competition remains scarce with the political tensions and matches are seen as a great opportunity to reflect those political tensions. 

Recently, the tension between the two countries escalated with a suicide bombing attack sponsored by the terror group, Jaish-e-Mohammed in the Pulwama district of Jammu & Kashmir. This grave attack resulted in the death of 40 Central Reserve Police Force personnel, which in the opinion of the Indian government was an act of war leading them to raise the issue on the global platform. Surprising, one of the biggest acts of public response, with the usual backlash of the country’s rights over the Kashmir valley, was a call to abandon the upcoming match between the two countries following the start of the ICC cricket world cup. Although, the Modi government did conduct airstrikes against Pakistan, leading to a major confrontation between the two countries along the ‘line of control’ (the de facto border between the two countries), a large scale debate about whether India should abandon the game was a hotly debated topic in the country.

It is worth noticing that later the Board of Control for Cricket in India (BCCI), did hand over the matter to the Modi government, after which the decision was inclined towards the sportsmanship of the country, however, both the Indian cricket team and the BCCI were not ready to desert the will of the public that easily. Involved in an ODI series with Australia, the Indian team walked out wearing military caps as a sign of apparent solidarity with the troopers killed in the terrorist attack. Never before had Team India taken it upon themselves to spread such jingoistic propaganda on a global scale and make such overt statement. The rise of the protestors in Pakistan were met with official statements from the International body of Cricket (ICC), stating their approval as a means of “support” to the Indian team for a fund-raising effort for their fallen soldiers.  

Similarly, in an act of nationalistic fervor, the BCCI decided to get Pakistan banned from the upcoming world-cup prior to its commencement but was severely backlashed by the International Cricket Council (ICC), to keep politics away from the sanctity of the game. Although BCCI was unsuccessful in passing an unrealistic degree of order, given their large scale influence on the International body, it was clear that cricket had become an additional weapon of mass destruction and means of propaganda between the two countries.

So has the situation become better now? Recently, an Ad-war following the start of the world cup has emerged between the two countries, given their highly anticipated upcoming clash on the 16th of June. Ahead of the Sunday clash-guaranteed to put both the nations at a standstill- Star Sport’s Mauka ad ( loosely translated to a chance of winning) has captured the attention of the Indian fans, as the video has garnered over 2.5 million views after it was published on 10th June 2019. This video currently stands as a reprise an extension of the “Patakhe kab podhenge” campaign (clumsily translated to “When will be get to burn crackers”), wherein a Pakistani fan never gets a chance to burn his crackers as Pakistan is always defeated by India on a world cup stage, as indicated by the records as well. However, the new Mauka ad seems to recognize the importance of June 16th as Father’s day and does not fail to interject the role of India as a father in comparison Pakistan, as a means of cheeky humor which received large scale reaction from the Pakistani fans.

As a means of response, a Pakistani news channel Jazz Tv published a video with a character impersonating Wing Commander Abhinandan Varthaman, the Indian air force pilot who was captured, briefly held and then released under the pretense of the Geneva Convention. The character is seen sporting the pilot’s handlebar mustache with a fake South Indian accent and is dressed in the Indian team jersey, following which an interrogator asks him to give back the teacup he has been holding, as a means to denote how the cup belongs to Pakistan. This video was met with the usual support from the Pakistani fans and deemed ‘racist’ by the Indian fans, accounting to the portrayal of the esteemed pilot with a fake southern accent. Although, tension has been running high between the countries for some time now, both the nations have resorted to extending their tensions to the cricket pitch as well, ensuring large scale traction for their upcoming matches.

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Modi’s Operandi

Syed Nasir Hassan

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Same old Modi puts himself in throne again but with different mandate this time. This time he came with much force and appeared more vigilant. Sweeping an electoral win with more than 300 seats out of 543 and restricting Indian National Congress to mere 52 seats. This clearly shows that India gave priority to nationalism over any other set of idea. Prior to previous electoral year i.e. 2014,Modi lured with promises of social and economic reforms and upheaval. Which sunk badly as some of the predicaments are still in the society. From being miserable in improving the job sector that gave rise to unemployment rate to the inducing grieves to the farmers, Modi bagged some failures as well in his previous tenure.

Whereas this time bait was the Hindu nationalistic sentiments, which Mr. Modi and his members of the den enjoyed the feast by winning the election. By using hate mandate, Modi successfully maneuvered himself and his party in to the realms of Delhi. Before elections, his unfortunate adventurous voyage with its neighbor and rival Pakistan made a lucid chance to portray himself as heroic figure. Modi flaunted anger and hate towards its immediate neighbor. It profited him in shape of getting a majority in the lower house of the Indian political saga. Hate sentiments were provoked and inducted in common minds. Question herby rises that how Hindu nationalism can or will transform India?

During previous reign of Mr. Modi, clear social and religious divisions were drawn onto the Indian society. This was mechanized in recent elections as well by promoting nationalism or more likely Hinduism. One of the tactics that was opted by BJP and Modi is persuasion of fears of Indian society and Hindu ideology and presenting himself as the only savior. Modi portrayed himself as the only option for Hindu caste to save Hindu ideology from external threats.

Modi has always been fond of shifting Indian secular discourse towards a Hindu nationalist sermon. His previous tenure and the plight minorities faced during that time testifies his aims. Now he has been elected for another five years. This time he has secured almost 56% of the lower house that clearly means that Mr. Modi will have to face no hurdle in his way towards passing a legislation.

Media and Modi has always been close aides to each other. This nexus was also prominent in the recent elections as Social and Electronic media, both were eminent in glaring Modi-ism. It ultimately cultivated his ideology in the minds of a common viewer hence reflecting it in the election results. His election campaign was given more coverage than any other thing on TV. The election soap series continued feeding the people of the India. Without any doubt, there have been immense flow of monetary funds in the veins on Indian media during the election time.

Modi’s Bharatya Jantya Party or BJP’s Modi have already drawn a plan to be executed in the society. Selection of candidates that were given tickets and won were some of the most extremist in nature. Shakshi Mahraj, a newly elected member of parliament on BJP’s seat already has more than 30 criminal cases against him. Another newly elected BJP’s Member of Parliament, Pragya Singh Thakur remarked Mahatma Gandhi’s assassin as “a patriot”. Not only this, selections for new cabinet members clearly indicated where Mr. Modi would be leading Indian society. Amit Shah who is also a president of BJP has ironically been selected as India’s Home Minister. There is a clear chance thatnew reforms might be religion centric rather than being focused on governance. BJP will clearly exhibit the Hindu ideology in governance that would further raise concerns for the minorities in India.

The Indian future and the question of Indian minorities seems bleak. Modi created a narrative on abhorrence and nationalism, he won elections on this mandate but now he has to defend it and every word of hatred that came out of his mouth may be realized through his actions. It puts Indian society in a dismal situation.

It is arduous to analyze that how large populous has voted in favor of hate mandate prompted by Modi. But there is a chance that Indian society might be falling prey to reverse psychology. It indulged itself so deep and intense in criticizing and accusing its neighbor, Pakistan, for being extremist and conservative society that it itself is becoming one.

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