New Delhi: The Financial Action Task Force (FATF) has issued a warning to Islamabad to curb terror financing in the wake of the Pulwama terror attack for which Jaish-e-Mohammed (JeM) had claimed responsibility. JeM is based out of Pakistan and the FATF has emphasised that terror could not take place without the movement of money in its network.

The Financial Monitoring Unit has issued 8,707 suspicious transaction reports (STRs) in 2018, as compared to 5,548 STRs issued in 2017 in Pakistan. Some 1,136 STRs have been issued in January and February alone this year, Pakistan-based newspaper Dawn reported.

The FATF noted that Pakistan did not “demonstrate a proper understanding of the terror financing risks…”

If Pakistan doesn’t comply with the objectives laid out by the FATF and curb funding for terrorism, it may be put on the blacklist by FATF by September this year.

Inter-ministerial consultations have been taking place in Pakistan to work on areas highlighted by the FATF”s International Cooperation Review Group (ICRG).

India has raised the issue of Pakistan harbouring terrorism on its soil on many forums, with the international community throwing its weight behind India following the February 14 terrorist attack in Pulwama, which claimed the lives of over 40 CRPF personnel.

The US has told Pakistan to stop supporting and providing shelter to terror groups. Islamabad now has to comply with the 10-point action plan of the FATF.

Earlier on February 21, the Pakistan government had declared 69 terrorist organisations including the JuD and FIF as banned, amid intense global pressure to rein in the militant groups following the Pulwama terror attack that claimed lives of 40 CRPF soldiers in South Kashmir.

However, Hafiz Saeed-led Jamaat-ud-Dawa (Jud) and its wing Falah-e-Insaniat Foundation (FIF) were not banned despite orders and as a result, have been kept under the ‘watch-list’ by Ministry of Interior under section 11-D-(1), Schedule-II of the Anti Terrorism Act 1997 in Pakistan.

(With agency inputs)