Terror financing

Published February 17, 2018

THE juncture that Pakistan stands at today — of potentially being ‘grey listed’ by the Financial Action Task Force for failure to take action against groups and individuals designated by the United Nations as terrorists — is not new. For three years, Pakistan was on this grey list from 2012 to 2015 for failing to enact an anti-money-laundering law. Once that was done, under the guidance of the then finance minister Ishaq Dar, the country was taken out of the grey list, and the financial sector breathed a sigh of relief. Then, a new set of commitments had to be delivered on: proscribe those groups designated as terrorists by the UN, and seize their assets, restrict the movement of their leadership and halt their fundraising. From 2015, the country struggled with this, because the groups in question, ie the Falah-i-Insaniyat and the Jamaatud Dawa, appeared to enjoy support from powerful quarters and were set to be ‘mainstreamed’ in Pakistani politics in preparation for the 2018 general election.

Now on the eve of the FATF meeting in Paris, we are seeing action being taken against these very groups. Previously, the country witnessed only cosmetic action being taken against groups designated as terrorists by the UN just before a review by the FATF. On completion of the review, action would not be pursued. This is why many are asking whether or not history is set to repeat itself. But could there be reason to believe that things may be different now? One positive aspect is that in the days following the promulgation of the presidential ordinance harmonising the list of proscribed organisations maintained by Pakistan and the UN, a crackdown more wide-ranging than previously has been in evidence. One must hope that somewhere deep inside the state’s decision-making structures, something has changed.

In any case, it is in Pakistan’s own interest to ensure that crackdowns and bans on specific organisations have the desired effect and that these groups are defanged permanently and do not have any opportunity to resurrect themselves under a different name. The actions being taken now, which include the seizing of the financial assets of the groups, hopefully indicate a change of heart at the top levels of government; but the state should ensure that these extend to all militant groups in the country — and not only to those proscribed internationally. The organisations in question have struck deep roots in Pakistani society with their charity work, and making a meaningful change in their modus operandi will require a sustained, detailed strategy. The current steps against these groups may well satisfy the international obligations that the government is seeking to fulfil. But the real commitment is to the people of Pakistan who want to be able to live and breathe in a country free from extremism.

Published in Dawn, February 17th, 2018

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