The Financial Action Task Force (FATF), the global watchdog that combats money laundering and terrorist financing, had grey listed Pakistan in June 2018 for not cutting down the finances of terrorist groups within its soil. Greylisting puts Pakistan under international scrutiny to prove its compliance with FATF norms. Notably, the greylisting move was initiated by the US.
Even with greylisting measures, Pulwama terror attack happened in February 2019 = FATF (with India’s lobbying) threatens Pakistan that it will be moved to the blacklist due to its failure to comply with the action plan which was due May 2019. Blacklisting could virtually cut all financial flows to Pakistan.
This big-picture article explains the following in an analytical manner with a mindmap for quick revision.
- What is the Financial Action Task Force (FATF)?
- How FATF works?
- What is the grey list and blacklist?
- What is the issue with Pakistan?
- Why the US initiated the move?
- What are the implications of placing Pakistan on FATF watchlist?
- Has Pakistan changed with external Pressures?
- Why has Pakistan failed to comply with or curtail terror funding?
- What is the way forward?
At a time when the whole world is battling the deadly COVID-19 crisis and when the virus has become the biggest story in the world of diplomacy, it has become important to look at how India is playing the game of diplomacy and shaping its foreign policy to meet its own demanding needs. The world witnessed a lot of change in its foreign policy approaches and many established bonds have been broken. It is a time when the world is witnessing heightened tensions among some nations while some transformed this into an opportunity for themselves. India has both hard realities to face and at the same time has ample opportunities to rise as a world leader. It thus becomes important to see how India is dealing with the present crisis and transforms it into an opportunity in the foreign policy domain.
The Biden Administration, which currently lacks its own China strategy, is looking to continue and expand Trump-era foreign policies. These protectionist and unilateral policies make it difficult to implement long-term policies focusing on creating a balance of power with China. This shortcoming is also making it difficult for the US to forge alliances with other countries to oppose China’s expansionism and exploitative trade ties. This is especially true when it comes to India, which is facing several new challenges under the Biden Administration. The US conducting the freedom of navigation operations in Indian waters without prior consent is a case in point.
In 2019, Indian firm “India Ports Global Limited” took over operations at the Shahid Behesti Port in Chabahar, Iran. The representative of India, Iran, and Afghanistan met and finalized the routes for trade and transit corridors between the three nations. An event, ‘Chabahar Day’ was organised on February 26, 2019, to promote and popularise the potential of Chabahar port. Recently, the Iranian government took several decisions that may impact India’s Central Asian Strategy.