Pakistan books militant leaders for terror financing

By Aamir Latif

KARACHI, Pakistan (AA) - Squeezed by mounting pressure, Pakistan has booked several leaders of banned militant outfits for terror financing in a desperate bid to avoid being placed on a blacklist of the Financial Action Task Force (FATF), officials and local media reported on Wednesday.

Hafiz Saeed, the head of Jamat-ud-Dawa'h (JuD), his deputy Hafiz Abdul Rehman Makki, and five other members were among those against whom cases were lodged, local broadcaster Geo News reported, quoting unnamed police officials.

The leaders of Jaish-e-Mohammad (JeM), Lashkra-e-Tayyeba, and Falah-e-Insaniat Foundation -- a charity organization affiliated with the JuD -- have also been booked for allegedly making assets through terror financing, the channel reported. A total of 23 cases have been lodged against the leaders of banned militant outfits, mainly on terror financing charges.

Also, authorities have started seizing religious seminaries and schools tied to these groups across Pakistan.

Both Pakistan and the U.S. have already proscribed these groups and seized their assets -- including JuD and JeM -- the groups blamed for several terrorist attacks such as the 2009 deadly Mumbai attacks killing over 150 people.

Last month, Pakistan managed to garner much-needed support from three FATF member states to avoid being placed on its blacklist, but black clouds still hang over Islamabad as the global money laundering watchdog set an October 2019 deadline to complete its action plan aimed at fully blocking money laundering and other financial loopholes.

Islamabad has been on the global money laundering watchdog’s radar since June 2018, when it was placed on a gray list for terror financing and money laundering risks after an assessment of the country's financial system and security mechanism.

Turkey was the only country that opposed the move backed by the U.S, U.K., and India, with Beijing abstaining.

India -- co-chair of the joint group of FATF and Asia Pacific Group -- wants Islamabad to be placed on the Paris-based watchdog’s blacklist of countries which fail to meet international standards in combating financial crimes.

However, an aggressive diplomatic push from Islamabad temporarily frustrated the looming threat with the support of Turkey, China, and Malaysia.

According to the 36-nation FATF charter, the support of at least three member states is essential to avoid the blacklisting.

The watchdog, in its five-day meeting in Florida last month, agreed in June last year that Islamabad made progress towards implementing the action plan -- negotiated between Pakistan and other FATF members -- but still sought "dissuasive sanctions" and "effective prosecution".

In recent months, Pakistan has taken some major steps in accordance with the action plan, which includes a bans on foreign currency transactions without a national tax number, and on currency changes of up to $500 in the open currency market without submission of a national identity card copy.

The group will meet in Paris on Oct. 13-18.