Latest news with #FATF
Hindustan Times
an hour ago
- Business
- Hindustan Times
FATF's Pak challenge: Tracing routes of funds
At one level it seems like a huge win for India. At least one major body has focused on the Pahalgam terror attack rather than the operation that followed it, and ensuing calls for restraint. The Financial Action Task Force (FATF), the foremost authority on money laundering and terrorist finance, has not just condemned the terror attack, but, last week, resolved to launch a probe noting that it could not have been carried out 'without money and the means to move funds between terrorist supporters'. Unlike various groups asking for proof of who did the attack, the FATF proposes to find it for itself. The Pulwama terror attack that killed 40 security personnel happened even as Islamabad was threatened with blacklisting. (Waseem Andrabi/HT) The FATF was formed in 1989 by the G-7 countries, the European Commission and eight others (who are not listed), to combat money laundering, including 'terrorist financing and the financing of proliferation of weapons of mass destruction'. Over the years, it steadily increased its mandate to include all manner of actors including narcotics networks. India joined in 2010, after a rigorous examination of its banking systems, a review which happens periodically to protect the global system from danger. In 2024, India again got an 'outstanding' report for its financial stability and probity, though the FATF warned about 'non-profit' associations being used for terrorist finance. A number of NGOs were shut down, causing a cry of illiberalism. Pakistan, on the other hand, was put on a 'grey list', which means its financial systems have significant deficiencies, three times: Once in 2008, and taken off the list in two years after some improvements; again in 2012 for not curbing terrorist financing among other things; and again in 2018 for the same reason. This time it kept it there until October 2022, during which period Islamabad sentenced Lashkar-e-Taiba leader Zaki ur Rehman Lakhvi to five years imprisonment, Hafiz Saeed to 33 years in jail, and set in place legislation including an Anti-Terrorism Act (Amendment) Bill, 2020 which updated the legal definition of terrorism to international standards. A legislation was introduced to bring Pakistan's laws in line with the UN laws on terrorist financing, 20 years after Resolution 1373 had been enacted, and further gave the State Bank of Pakistan a degree of autonomy to implement much of this. That was when Imran Khan was in office, against an Opposition which feared their large unaccounted funds would come under scrutiny. Khan, who had a clean record on corruption, warned that going onto the 'black list' would mean an economic crash. A country on the black list is sealed off from the rest of the world in financial terms and faces serious difficulties in securing loans. At that time, Pakistan's external debt was 37.6% of GDP! But terrorism did not stop. The Pulwama terror attack that killed 40 security personnel happened even as Islamabad was threatened with blacklisting. It paused after India retaliated with air strikes deep inside Pakistan for the first time. Subsequently, government reports showed a significant drop in infiltration attempts from 216 incidents in 2019 to 53 in 2022 (according to MHA reports). But terrorist tactics simply shifted. Narcotics trafficking long associated with terrorism in Punjab returned. According to reports, some 251 transborder sorties by drones brought in weapons and drugs, this time mostly methamphetamine and derivatives from Lahore, even as underground tunnels were spotted along the international border. Second, terrorist groups became smaller in size but better trained and equipped. The personnel could live off the land for months in thick forests and were equipped with phones that evaded mobile towers. Then Pahalgam happened. As the FATF swoops in, two things matter. The first is whether our forces have managed to crack the communication system of terror groups to trace the source areas. That is vital. Second, Pakistan, despite the Taliban's crackdown on opium cultivation, seems to be able to access vast amounts of meth, as seen in the 300-kg seizure in April 2025 off the Gujarat coast. Pakistan also has money to continuously raise not just its defence budget — now far above the mandated 1.9% of its GDP when pensions are included — but also the pay of parliamentarians (by 138%) and defence personnel. Then, the FATF has to examine how Chinese funds are coming in to support the army, since none of it is evident in the budget papers. The FATF may also find other sources of financing, from outside the country. The sum of all this is to find out why Pakistan doesn't seem to care even if access to international financial assistance, crucial for it, is cut off. If Prime Minister Shehbaz Sharif's call for peace has some basis, he could start by emulating Indian initiatives like linking national identity cards with bank accounts, use its very capable investigative agencies to root out terrorist accounts, and those of 'charitable' organisations such as the highly suspect Al Khidmat Foundation. The army will, of course, oppose this. But major financial institutions must back the politicians, by linking aid with democracy. Otherwise nothing at all will move forward. Meanwhile, India had better look at hawala networks at home. Money has no nationality and no morals, and it could be used by hostile agencies as well. Time to get cracking for our own interests. Meanwhile, the Sharifs might actually find the going easier as terrorists are curtailed, and the army's powers with it. Tara Kartha is director (research), Centre for Land Warfare Studies. The views expressed are personal.
India Today
2 hours ago
- Politics
- India Today
Pak will go to war: Bilawal Bhutto threatens India over Indus Waters Treaty
Pakistan's former foreign minister Bilawal Bhutto on Monday said that Pakistan would go to war if India denies Islamabad its share of water under the Indus Waters Treaty (IWT).Bilawal, who heads the Pakistan Peoples Party (PPP), said if India follows through on denying water, 'we will have to wage war again.' Speaking in parliament, Bilawal rejected India's move and threatened retaliation over what he called an illegal suspension of the has two options: share water fairly, or we will deliver water to us from all six rivers,' he said, referring to the six rivers of the Indus basin. He further added, 'The attack on Sindhu (Indus River) and India's claim that the Indus Water Treaty has ended, and it's in abeyance. Firstly, this is illegal, as the IWT is not in abeyance, it is binding on Pakistan and India, but the threat of stopping water is illegal according to the UN charter.' His comments came days after Union Home Minister Amit Shah announced that India would never restore the 1960 water-sharing agreement, which New Delhi put in abeyance following the April 22 Pahalgam terrorist attack that killed 26 statement followed a sharp reaction from Pakistan's Foreign Ministry, which two days earlier had slammed Shah's declaration as a 'brazen disregard' for international Bilawal also emphasised dialogue and cooperation and said, 'If India and Pakistan refuse to talk, and if there is no coordination on terrorism, then violence will only intensify in both countries,' he accused India of 'weaponising terrorism for political purposes' and claimed that India worked diplomatically to reverse Pakistan's gains on the Financial Action Task Force (FATF) front. 'At a time when Pakistan had successfully moved from the FATF grey list to the white list, India made every effort to drag us back to the grey list using false narratives and diplomatic pressure,' he also pointed to international support on Kashmir, saying that Pakistan succeeded in raising the issue globally and cited former US President Donald Trump's willingness to mediate on the in response to the Pahalgam attack, not only suspended the Indus Water Treaty.- EndsWith PTI inputs.
Hindustan Times
2 hours ago
- Politics
- Hindustan Times
Bilawal Bhutto threatens 'war' if India denies Pak water under Indus Waters Treaty
Pakistan's former foreign minister Bilawal Bhutto-Zardari on Monday said his country will go to war if India denies Islamabad its fair share of water under the Indus Waters Treaty (IWT). Bilawal Bhutto Zardari said that the Indus Waters Treaty was still in vogue as the agreement cannot be held in abeyance.(AFP) India put in abeyance the 1960 agreement soon after the April 22 Pahalgam terrorist attack that killed 26 people. Home Minister Amit Shah last week announced to never restore the historic accord. Bilawal's comments came two days after Pakistan's Foreign Ministry criticised Shah's 'brazen disregard' for international agreements. Bilawal, in a speech in parliament, rejected the Indian decision to suspend the agreement and threatened to get Pakistan's share of water. 'India has two options: share water fairly, or we will deliver water to us from all six rivers,' he said referring to the six rivers of the Indus basin. He said that the IWT was still in vogue as the agreement cannot be held in abeyance. 'The attack on Sindhu (Indus River) and India's claim that the IWT has ended and it's in abeyance. Firstly, this is illegal, as the IWT is not in abeyance, it is binding on Pakistan and India, but the threat itself of stopping water is illegal according to the UN charter,' he said. Bilawal, who is head of the Pakistan Peoples Party (PPP), also threatened that if India decides to follow through on the threat, 'we will have to wage war again'. The former foreign minister also highlighted the importance of talks and cooperation, especially in counterterrorism efforts. 'If India and Pakistan refuse to talk, and if there is no coordination on terrorism, then violence will only intensify in both countries,' he said. Bilawal also accused India of 'weaponising terrorism for political purposes'. He claimed that during his diplomatic visits to the UK and European nations as foreign minister, it was evident that India had lobbied hard to reverse Pakistan's progress on the Financial Action Task Force (FATF) front. 'At a time when Pakistan had successfully moved from the FATF grey list to the white list, India made every effort to drag us back to the grey list using false narratives and diplomatic pressure,' he claimed. Bilawal also said that Pakistan succeeded in raising the issue of Kashmir on the world stage and President Donald Trump had spoken in favour of mediation on Kashmir. Apart from immediate steps such as putting the IWT in abeyance and stopping all trade with Pakistan, India launched Operation Sindoor on May 7, targeting terrorist infrastructure in territories controlled by Pakistan in response to the Pahalgam terror attack. The strikes triggered four days of intense clashes that ended with an understanding on stopping the military actions on May 10.
The Citizen
2 hours ago
- Business
- The Citizen
Navigating economic headwinds of grey list and US tariffs
While South Africa might finally see the end of being on the grey list, the country still faces the US tariffs that could be 30% again. While the world watches various wars and conflicts play out that can affect economies worldwide, including our own, South Africa must also complete its work to get off the grey list and plan and negotiate to manage the US tariffs scheduled to kick in on 9 July. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her weekly newsletter that South Africa's completion of all the Financial Action Task Force (FATF) requirements is a significant achievement for the country's economy. 'I congratulate National Treasury for orchestrating a complex, multi-agency effort that fundamentally strengthened our anti-money laundering and counter-terrorism financing frameworks. 'The final hurdle, to demonstrate sustained improvements in investigation and prosecution capabilities, required rebuilding capacity across our entire criminal justice system, from police units to the National Prosecuting Authority. 'We now have a clear trajectory toward exiting the FATF grey list in October, pending the required on-the-ground peer review.' ALSO READ: South Africa well on its way to get off FATF grey list Grey list costs the economy but can soon be over Mavuso says this progress cannot come soon enough, as grey listing imposed crushing costs on South Africa's economy due to the fact that international financial institutions must apply enhanced due diligence to every South African transaction, a burden many simply avoid by severing relationships with our companies entirely. 'BLSA sounded the alarm about impending grey listing six months before it happened, commissioning a report that analysed the potential economic costs. Throughout this process, business stood ready to support government in meeting FATF requirements, and there have been various joint projects to do so. 'The improvements achieved since February 2023 extend far beyond FATF compliance. We now have comprehensive beneficial ownership registers for companies and trusts, while investigators can finally use the Financial Intelligence Centre's vast data reserves to build prosecutable cases. 'Our law enforcement agencies have also been integrated into global networks combating transnational crime. Let's be clear: Grey listing was state capture's direct legacy. The systematic gutting of our criminal justice system, from crime intelligence to the NPA, created a paradise for white-collar criminals. 'Skilled investigators were purged, replaced by political appointees whose job was protection, not prosecution. The probability of facing consequences for economic crimes became negligible.' ALSO READ: Financial Intelligence Centre: Lawyers and estate agents keeping SA on grey list Treasury reversed institutional decay to get SA off grey list Mavuso points out that the National Treasury's remediation process started to reverse this institutional decay, with important economic implications. 'As I consistently argued, the collapse of the rule of law devastates economic growth. Contracts become unenforceable. Businesses shoulder massive fraud and corruption costs. Criminal syndicates flourish, spawning extortion networks that strangle legitimate enterprise.' Although critical steps remain before October's official exit, Mauvo says prospects are now excellent. 'Removing this economic headwind will provide crucial momentum for growth. Given the challenges we face, we need every advantage we can get.' ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks US tariffs of 30% looming on 9 July However, she says, with this good news, there are also other challenges waiting for the South African economy, and in particular, the significant headwind from Washington that demands urgent attention. 'The current 10% US tariff on South African goods expires on 9 July, reverting to a punitive 30% unless we can secure an extension.' Trade, industry, and competition minister Parks Tau will meet with US officials this week at the US-Africa Summit in Angola, a meeting that could determine our economic trajectory. However, Mavuso says progress has been disappointing since President Trump and President Ramaphosa's Washington discussions, during which South Africa tabled proposals, including mineral access and potential US liquified natural gas acquisitions. 'The US did not give formal feedback, and the clock is ticking. The minister and his team must break the logjam. The broader geopolitical context makes this moment even more critical. China's recent announcement of duty-free access for all African nations with diplomatic ties will not have gone unnoticed in Washington. 'We may be witnessing a fundamental shift in Africa's global orientation, one that could permanently damage American interests on the continent.' ALSO READ: Trump tariffs' seesaw impact on Southern Africa SA cannot afford to lose employment-intensive industries due to US tariffs She says this matters profoundly for two reasons. 'Africa remains a crucial source of critical minerals essential to the American economy, while our continent's young, growing population positions Africa as a key long-term consumer market and manufacturing hub. America risks ceding this strategic advantage to China.' Mavuso believes that South Africa must present a materially different proposition that clearly serves American interests as well as our own. 'In this transactional environment, incremental gestures will not suffice. Business has a vital role here. 'Our daily interactions with American customers and suppliers provide direct insight into genuine opportunities and risks. This intelligence must inform our negotiating strategy. The consequences of failure fall hardest on manufacturing and agriculture, sectors that drive employment. 'Raw material exports remain exempt, but value-added activities that create jobs face significant disruption under 30% tariffs. We cannot afford to lose these employment-intensive industries.' She emphasises that this week's meetings will be defining. 'We need a deal that recognises economic realities while serving mutual interests. The stakes are high.'
The Hindu
3 hours ago
- Politics
- The Hindu
Bilawal Bhutto says Pakistan will go to war if India denies water under Indus Waters Treaty
Pakistan's former Foreign Minister Bilawal Bhutto-Zardari on Monday (June 23, 2025) said his country will go to war if India denies Islamabad its fair share of water under the Indus Waters Treaty (IWT). India put in abeyance the 1960 agreement soon after the April 22 Pahalgam terrorist attack that killed 26 people. Home Minister Amit Shah last week announced to never restore the historic accord. Mr. Bhutto's comments came two days after Pakistan's Foreign Ministry criticised Mr. Shah's 'brazen disregard' for international agreements. Also Read | Pakistan violated spirit of Indus Waters Treaty by inflicting three wars, thousands of terror attacks: India tells U.N. Mr. Bhutto, in a speech in parliament, rejected the Indian decision to suspend the agreement and threatened to get Pakistan's share of water. 'India has two options: share water fairly, or we will deliver water to us from all six rivers,' he said referring to the six rivers of the Indus basin. He said that the IWT was still in vogue as the agreement cannot be held in abeyance. Also Read | No talks till Pakistan renounces terror, vacates PoK: India 'The attack on Sindhu (Indus River) and India's claim that the IWT has ended and it's in abeyance. Firstly, this is illegal, as the IWT is not in abeyance, it is binding on Pakistan and India, but the threat itself of stopping water is illegal according to the U.N. charter,' he said. Mr. Bhutto, who is head of the Pakistan Peoples Party (PPP), also threatened that if India decides to follow through on the threat, 'we will have to wage war again'. The former Foreign Minister also highlighted the importance of talks and cooperation, especially in counterterrorism efforts. Also Read | Pahalgam terror attack: India to explore 'never considered' options on Indus Waters Treaty 'If India and Pakistan refuse to talk, and if there is no coordination on terrorism, then violence will only intensify in both countries,' he said. Mr. Bhutto also accused India of 'weaponising terrorism for political purposes'. He claimed that during his diplomatic visits to the U.K. and European nations as Foreign Minister, it was evident that India had lobbied hard to reverse Pakistan's progress on the Financial Action Task Force (FATF) front. 'At a time when Pakistan had successfully moved from the FATF grey list to the white list, India made every effort to drag us back to the grey list using false narratives and diplomatic pressure,' he claimed. Also Read | Indus Waters Treaty to be kept in abeyance as Pakistan resorted to cross-border terror: source Mr. Bilawal also said that Pakistan succeeded in raising the issue of Kashmir on the world stage and President Donald Trump had spoken in favour of mediation on Kashmir. Apart from immediate steps such as putting the IWT in abeyance and stopping all trade with Pakistan, India launched Operation Sindoor on May 7, targeting terrorist infrastructure in territories controlled by Pakistan in response to the Pahalgam terror attack. The strikes triggered four days of intense clashes that ended with an understanding on stopping the military actions on May 10.
