United Nations, July 1:
India has defended the international anti-terrorism funding organisation against attacks on it by Pakistan saying it was motivated by fear of scrutiny. Calling the Financial Action Task Force (FATF) “an indispensable pillar of the global counterterrorism financing and anti-money laundering architecture”, India’s Permanent Representative P Harish said on Monday, “Attempts to question its credibility often reflect fear of scrutiny rather than genuine process-related concerns”.
“Our history shows that critical terrorist financing risks have not emerged anonymously”, he said. “They have been sponsored, including by some state actors”.
Diplomatically, he did not name Pakistan, but the target of his comments was clear, as Pakistan has accused the FATF of being politically weaponised against it when it was placed on its “grey list” of countries under increased monitoring.
Harish was speaking at an event India co-sponsored with France on “Joining Forces to Counter Terrorism Financing in the Context of Evolving Threats and Emerging Technologies” held on the sidelines of the UN’s Counter-Terrorism Week.
“For decades now, my country, India, has confronted cross-border terrorism, and new digital technologies are only making the sources, the methods, and channels used for the flow of assets more complex”, he said.
In his defence of FATF, he said its “work is technical, evidence-based, and rooted in internationally accepted standards”.
“Countries facing adverse assessments should address the deficiencies identified, strengthen domestic enforcement, improve financial transparency, and demonstrate irreversible action against terror financing networks”, he said.
“The answer to FATF scrutiny is not politicised activism in UN forums, but credible compliance”, he said.
“States that allow their territory, institutions or financial channels to be misused for terrorism must stop exporting instability and start fulfilling their obligations towards international peace and security”, he said.
The 40-member FATF leads international action against terrorism funding, as well as money laundering for criminal purposes like drug trafficking and illegal arms trade, and cyber fraud.
It monitors countries to ensure that they do not become havens for illegal monetary activities and sets the standards for preventive action.
Harish listed India’s cooperation with the FATF and its efforts against emerging monetary-related technologies that can be exploited for criminal purposes.
“We have brought virtual asset service providers within our anti-money laundering framework” and “tightened verification requirements for centralised exchanges and users”, he said.
India has also contributed case studies to FATF updates and shared best practices to mitigate terror financing risks, he added.
Despite its attacks on FATF, Pakistan reluctantly agreed under international pressure and threats of financial strictures to the conditions set by FATF to come off its “grey list” whle continuing to be monitored by it and its affiliate, the Asia/Pacific Group on Money Laundering.