DOES power politics influence the decision-making process of the Financial Action Task Force (FATF)? Apparently, yes. Geostrategic factors affect international politics in the modern world order. This game of thrones is being deliberately played by hegemonic powers to influence decision-making of most international institutions, if not all.

The geo-economic paradigm does not consider a country’s significance. It is the conflict or confluence of interest that matters. The FATF, a so-called independent body, is a watchdog that is supposed to combat money-laundering and terrorism financing activities.

It puts states in its black or grey lists employing its own standards and its own interpretation of those standards. Pakistan’s fate continues to be controlled by power politics and global powers. States like Yemen, Ethiopia, Sri Lanka, Serbia, and others continue to face uncertainty as well on this count.

The statement issued recently by the Indian Ministry of External Affairs to the effect that Prime Minister Narendra Modi would make sure by influencing the platform of the United Nations that things remain tricky for Pakistan is as shocking as it is disgusting.

The FATF, which claims to have neutrality in its assessment and decision-making processes, has demonstrated bias when it comes to dealing with India. The actions of Indian nationals and organisations have gone unnoticed, or, should I say, deliberately ignored. A bunch of Indians were caught smuggling uranium, and there have been more than sufficient evidence of India’s funding or sponsorship of terrorist entities inside Pakistan. Does that not fall under terrorism financing clauses? If not, why?

India has avoided the level of scrutiny by international organisations that is often reserved for Pakistan and a few other targeted countries. In another major scandal that was, and is, ignored by the FATF relates to suspicious transactions by Indian individuals and businesses involving more than 40 Indian banks. The matter was reported in September 2020, but nothing has happened over the last year.

In order to create a bad impression of its adversaries in the region, especially Pakistan, India has also been leveraging its influence with a number of international think tanks and academic institutions. The difficult part for Pakistan is that it would struggle to stabilise and grow its economy by exhausting its energies in managing tactical conflicts, as is the case with matters related to the FATF.

It is a clear case of global powers using international organisations to use carrot as the preferred tool in their dealings with India, while focussing on the stick when it comes to their interactions with Pakistan. This is global politics at its worst.

Somesh Kumar
Ghotki

Published in Dawn, September 17th, 2022