Sanctions are brewing against Pakistan.
The United Nations is threatening sanction on Pakistan for failing to curb anti money laundering and terrorist financing. Some initiatives are also being taken to improve Pakistani laws pertaining to AML and terrorist financing. They have said they plan to make amendments to the Anti Terrorism Act 2012 by February next year to step up laws on AML and terrorist financing but there have been many promised and good laws passed that have not been enforced. In case of failure, the UN will slap sanctions on the country.
Pakistan was referred to the International Co-operative Review Group (ICRG) for inadequate and unconsolidated implementation of anti-money laundering and counter-terrorism financing standards back in 2007.
To avoid sanctions the Pakistan government has told friendly countries that FATF is heavily dominated by western countries along with India. FATF has political motives. China is the only country in the group, which agrees with Pakistan. That is how bad it is getting.
This is a clue for all of us – When China agrees that you have the right approach on AML and Corruption – you are done for, or you owe China money.
Pakistan fears these sanction and is trying very hard to avoid them as the country is surviving on Foreign Direct Investment (FDI) and even limited sanctions will kill FDI.
Pakistan is cornered in a bad corner they built for themselves. The choices are the result of a Faustian bargain trying to look strong yet being weak, and not taking on evil 20 or more years ago. They must fight to win against al-Qaida and the serpent of the Taliban they helped to nurture and raise or they loose all foreign capital flows. Either way there is a real battle brewing in Pakistan – they either choose to exert their sovereignty over Waziristan and take back the lost territory, surrender Waziristan to Afghanistan to end terrorism’s safe haven in Pakistan, or have all FDI cut off and wait for the full blow civil war.
This is the very sad corner Pakistan’s blithering, horribly corrupt, idiot leaders of the last 30 years have placed the population.