The screws tighten (Indian Express)

Mains Paper 3: Security
Prelims level: FATF listings
Mains level: Money laundering and its prevention process

Context

• Pakistan’s escape, at least for the moment, from the so-called black list of the global Financial Action Task Force (FATF) that acts against terror financing in the world has surely disappointed Delhi.

Key implications of this event

• It reinforce Delhi’s critics, who believe Pakistan can’t be “isolated” even if its army brazenly violates its international legal commitments on fighting terrorism.
• Disappointment and criticism arise from the fact that the government of Narendra Modi had mounted a sustained campaign in the last few years to apply the existing international norms against money laundering and terror financing on Pakistan.

About FATF listing

• The grey list is about putting countries on notice and seek time-bound compliance with a range of FATF benchmarks.
• If countries fail to comply, they get on to a black list that calls on nations to take additional measures against financial transactions involving Pakistan’s jurisdiction.
• At the moment, only two countries are on the black list — Iran and North Korea.

Pakistan and FATF

• Pakistan was first put on the grey list in 2012 but got off it in 2015 when the FATF and its procedures caught Delhi’s serious political interest.
• The intense Indian effort resulted in Pakistan being put on the grey list again in 2018.
• The FATF has certainly issued a stern warning to Pakistan that it could get to the black list if there was no progress by February 2020.

Limitations by FATF

• There is no guarantee, of course, that Pakistan will pay the price four months down the road.
• FATF is a multilateral mechanism, where bilateral political considerations do impact on the outcomes.
• Pakistan can thank China, Turkey and Malaysia, whose support helped it escape the black list.
• There is nothing to suggest that the Pakistan policies of the three countries might change any time soon.

Way forward

• India’s effort has generated unprecedented international pressure on Pakistan Army’s support to cross-border terrorism.
• Sustaining the international mobilisation also turns harsh light on Islamabad’s allies — especially China — that talk the talk on opposing terrorism and improving ties with India but refuse to walk the walk.

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Prelims Questions:

Q.1) With reference to the Right to Information Act, 2005, which of the following statements is/are correct?
1. It provides for the appointment of a public information officer in each department.
2. The Official Secrets Act, 1923 overrides the RTI Act.
3. No court can entertain any suit, application or other proceedings in respect of any order made under the Act.

Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Ans: C
Mains Questions:
Q.1) What do you mean by FATF listing? How India will benefitted by inclusion of Pakistan in the FATF listing?