FATF’s June meet: India will hand dossier on Pak to get it back on grey list
FATF’s June meet: India will hand dossier on Pak to get it back on grey list
(Source: Page 1 and 2, The Indian Express)
| Topic:
GS Paper 2 (International Relations), GS Paper 3 (Internal Security) |
| Context |
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Background
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In 2022, Pakistan was removed from FATF’s grey list after commitments to implement recommendations on terror financing and money laundering.
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India claims Pakistan has since violated those promises and continued to provide safe havens for terrorist groups.
India’s Planned Action
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India will submit a dossier citing Pakistan’s non-compliance with Recommendation 38 (mutual legal assistance) and Recommendation 8 (monitoring non-profits).
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India’s aim is to call out Pakistan’s lack of action on proscribed entities like LeT, JeM, and their affiliates.
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India will push for Pakistan’s re-listing due to:
• Weak domestic legislation to prevent terror financing
• Lack of enforcement on designated terrorists
• State involvement in supporting terrorist activities
• Non-cooperation on legal/judicial assistance
Diplomatic Outreach
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India has already briefed Russia, France, and other FATF members.
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Finance Ministry and MEA are also lobbying IMF to consider FATF findings during upcoming economic reviews with Pakistan.
Implications for Pakistan
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If relisted, Pakistan will face restrictions on foreign investments, loans, and trade.
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IMF bailouts and credit ratings could be affected, worsening its economic instability.
Conclusion/Way Forward
- India’s move aligns with its broader strategy of coercive diplomacy post-Operation Sindoor.
- It reflects India’s focus on linking counter-terror measures with international financial and diplomatic pressure.
- FATF’s credibility as a global watchdog depends on consistent enforcement; hence, India’s dossier could receive global traction if backed with verifiable evidence.
| Practice Question:
“Examine the significance of FATF’s grey list in counter-terror financing frameworks. How can India leverage global forums like FATF to combat cross-border terrorism?” GS2– 250 Words (15 Marks) |
