Pakistan out of FATF Grey List

Diplomacy is a tough subject, and practising it becomes even tougher when nations like America get involved. It is said for international diplomatic relations that there are no permanent friends, no permanent enemies, and only permanent interests. However, the interests of America keep changing with its government. America fought in the world wars with Russia on its side.

However, Russia’s sharing the status of a superpower never went down with the western nation. Fast forward to today, the United States of America, along with its western allies, is fighting a sanctions war with Russia. Can the removal of Pakistan from the FATF Grey list be viewed in this light?

Pakistan out of FATF Grey List

Recently, the Financial Action Task Force (FATF), the global watchdog on anti-money laundering and combating financing of terrorism (AML/CFT) efforts, announced the removal of Pakistan from its grey list. The Paris-based organisation removed the Islamic nation from the list after a FATF technical team had conducted a “successful” visit. The nation had earlier sought removal, citing that it had ‘compiled with 11 conditions’. Pakistan has been on the list for deficiencies in its counter-terror financing and anti-money laundering regimes since 2018.

The Implications

Being on the grey list of a global watchdog, Pakistan’s access to international trade and the financial system was restricted. Pakistan was not able to seek loans from global organisations like the International Monetary Fund (IMF) and the World Bank.

There looms a threat over the nations in the Grey list, that any failure to take corrective measures and the position digress to the stringent FATF Black list. Now, after removal, the poor nation can run around its global masters seeking donations to feed the people in the country.

Warning the entire world on this development, External Affairs MInistry spokesperson Arindam Bagchi said, “As a result of FATF scrutiny, Pakistan has been forced to take some action against well-known terrorists, including those involved in attacks against the entire international community in Mumbai on 26/11.

It is in global interest that the world remains clear that Pakistan must continue to take credible, verifiable, irreversible and sustained action against terrorism and terrorist financing emanating from territories under its control.”

Myanmar in, Russia out

While the global watchdog took off Pakistan, Myanmar has been added to the blacklist. A move that puts Myanmar alongside North Korea and Iran as outcasts of the global financial system. The watchdog has cited a “continued lack of progress” and the fact that the majority of the actions Myanmar had promised to take had not been completed more than a year after the deadline.

Further, Russia was also side-lined at the FATF, said the director, Raja Kumar, announcing a cut in Russia’s role in the organisation due to its invasion of Ukraine. With this, Russia will now not be able to participate in any current or future projects of the organisation.

The US angle

After the disintegration of the USSR, the US left no stone unturned in climbing the ladder to be the only pole. The most important step came as the one who combats terror, as in the post-90s the world was marred by terrorism. The US began deploying two international mechanisms in its fight against terror.

The first being the Financial Action Task Force (FATF), and the other being the system of designation of terrorists in a global list under the United Nations Security Council resolution that also required states to implement sanctions against them. The second step was aimed at embarrassing the states hosting these entities or individuals.

However, the US has not maintained a foreign policy in the modern world. For the one unversed, when Pakistan was pushed down the list, it was Donald Trump ruling the United States, the American President who saw India as a strategic ally. Some similar sort of foreign policy was being practised by the Democrat Biden as well. However, after multiple failed attempts to bring India on their side, Biden is forced to return to its original policy of cajoling Pakistan, and military aid stands in deposition for the same. Biden is now trying to keep India in check with his Pakistan policy.

Does the US aim at Russia?

The reason why Pakistan has been dropped from the Grey List of the FATF is known to all. Be it FATF or the United Nations, the so-called international organisations have always acted as stooges of America, functioning as per its whims and fancies.

To add on, America is a pro when it comes to fighting proxy wars using soldiers, militants, and terrorists belonging to other nations. After side-lining Russia from the global organisation, the next thing the US can do is utilise the Pakistani terror factory against Russia.