STOCK MARKET BSE NSE

From Dawood to Jaish and LeT, Pakistan's State Bank fails to plug bad money

The federal government, as well as the state government, have failed to launch a crackdown on financial companies linked with JeM, LeT and other terror outfits operating from Pakistan.

Published: 23rd August 2019 06:20 PM  |   Last Updated: 23rd August 2019 06:20 PM   |  A+A-

Militancy, gun,terrorist

For representational purposes (File photo| AFP)

By IANS

With veteran Talibani cadres and fidayeen groups of Jaish-e-Mohammed (JeM) and Lashkar-e-Taiba (LeT) swarming Pakistan occupied Kashmir (PoK) region, top authorities in Islamabad find it tough to adhere to the norms set by Financial Action Task Force (FATF), the global watchdog for terror funding and money laundering. No wonder, the State Bank of Pakistan seems to have failed to initiate tough measures against suspicious financial institutions linked with terror outfits and operating from its soil.

To make matters worse for Pakistan, the arrest of Jabir Motiwala, a leading broker of National Stock Exchange, by Scotland Yard in London, last year, has exposed the nexus between the underworld and the financial institutions in Pakistan.

Motiwala and his business associates are charged with operating one of the biggest money laundering rackets overseas at the behest of mafia don Dawood Ibrahim, declared a global terrorist by the United States. 

Pakistan's major banking and financial institution, Habib Bank, is also charged by the US Department of Services for facilitating billions of dollars to Saudi's private bank, Al Rajhi which has links with Al Qaeda. Habib Bank was asked to shut it operations in the US, last year.

Indian intelligence reports said several private banks and consulting firms have been facilitating terror funds for JeM and Let.

During 26/11 Mumbai terror attacks, such leads of money trails were provided by foreign agencies to Mumbai police.

The federal government as well as the state government have failed to launch a crackdown on financial companies linked with JeM, LeT and other terror outfits operating from Pakistan. 

Islamabad's top anti-corruption and anti-terror agency, Federal Investigation Agency (FIA) has also succumbed to pressure in mustering courage to dismantle money laundering and terror funding source.

Several top terrorists wanted by FIA are absconding on files despite their presence in the country.

For Pakistan, the pressure has now mounted from international fraternity as the Asia-Pacific Group of the FATF has placed that country in the "Enhanced Expedited Follow Up List (Blacklist)" for its failure to meet its standards.

ALSO READ: Pakistan submits 27-point action plan to FATF, says report

In its recent meeting in Canberra, the APG found that Pakistan was non-compliant on 32 of the 40 compliance parameters of terror financing and money laundering, officials said.

On 11 effectiveness parameters, Pakistan was adjudged as low as 10.
 

Stay up to date on all the latest World news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp