THE GIST of Editorial for UPSC Exams : 25 FEBRUARY 2019 (Terror timeline: on FATF advisory to Pakistan (The Hindu))

Terror timeline: on FATF advisory to Pakistan (The Hindu)

Mains Paper 3: Security
Prelims level: FATF
Mains level: Procedure taken to counter terrorism operation

Context

• The statement of the Financial Action Task Force in Paris is another message to Islamabad from the international community of the mounting costs of its decades-old lax policy towards terror groups.
• After the February 14 Pulwama attack and the global terror finance watchdog condemned, in no uncertain terms, the suicide bombing of the CRPF convoy that left 40 personnel dead.
  Guidelines issued by FATF
• It issued a 10-point advisory to Pakistan if it wants to be out of the “grey list” of countries posing a “risk to the international system”. Pakistan has been on the grey list since June 2018, and will be required to show compliance or face being “black-listed” by the session in October 2019.
• A black-list would mean enhanced financial scrutiny of its government, possible sanctions against its central bank, and a downgrade of its financial and credit institutions.
• This is something Pakistan, already facing an acute debt crisis, can ill-afford. Amongst the FATF’s stern observations of what it called Pakistan’s lack of “understanding” of the terror finance risks posed by groups, such as the Taliban, al-Qaeda, Islamic State, Lashkar-e-Taiba and Jaish-e-Mohammed, was a clear message.
• Islamabad must visibly demonstrate that it has taken measures to crack down on and shut down the infrastructure and finances of these groups.
• The first deadline to show results is May 2019, with a review in June.
• This goes even beyond the Security Council guidelines under its 1267 listing that oblige Pakistan to ensure that terror entities do not travel out of the country, or have access to funding or weaponry.

Conclusion

• The banning of the JuD and the FIF doesn’t appear to have affected the groups in the slightest, and a day after taking over the Bahawalpur seminary/
• Pakistan’s Information Minister announced that its links to the JeM were simply “Indian propaganda”.
• The world community must make it clear to the Pakistan government the possible international and financial repercussions of ignoring the FATF’s timeline.

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Prelims Questions:

Q1. With reference to Qualified Foreign Investors (QFI), consider the following statements:

1. They include individuals from the countries that are member of Financial Action Task Force (FATF).
2. They cannot invest in government securities.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: A

Mains Questions:
Q1. The FATF must impress upon Pakistan the need to take meaningful action. In this context what are the role need to be taken by the FATF to counter terrorism. Comment.