FATF report raises concerns over delay in imposing financial sanction against terror entities

NEW DELHI: Raising concerns over the delay in imposing financial sanction against terror entities, the global anti-financial terror body, FATF in its November 2015 report says, "Such delays give terrorist and terrorist financers a window of opportunity to move or use funds before they are frozen." India has accused Pakistan of moving slow when it comes to sanction against terror outfits like Lashkar-e-Toiba (LeT) and individuals like Mumbai 2611 mastermind Hafiz Saeed and Zaki-ur-Rehman Lakhvi.
The report prepared ahead of G 20 leaders meeting at Turkey last week also mentions that though Pakistan has designated as many as 117 individual and entities for anti-national activities Islamabad has only frozen assets worth Euro 32200 (about 23 lakhs) as compared to India that has seized assets worth Euro 3 lakh (over Rs 2.12 crore) of 37 entities, till August 2015. United States has designated as many as 893 entities and individual with freezing Euro 20500000 (1452 crore approx) on charges of terrorist financing and money laundering of illicit funds, the report says.

Without naming Pakistan, the FATF report observed that the "seizure of illicit funds and assets also depends upon nature of terrorist and terrorist financing activity in each country , and from the different roles that targeted financial institutes play in the context of national counter-terrorism charges." According to FATF, the mid-session review of various countries and economic powers of the world was conducted in the wake of the increased activities of dreaded terrorist group, ISIS that also claimed the responsibility of Paris attacks where 129 persons were killed in multiple attacks.

The G20 nations, including India was represented by Prime Minister Narendra Modi at Antalay, last week soon after the Paris attacks where the world leaders resolved to seek urgent and united global efforts to combat terrorism including stringent measures against Islamic State (IS) militants. The inter-governmental body also underlined that there were very low conviction among countries across the globe when it comes to "conviction for terrorist financing."

The report also observed that out of 194 countries reviewed by them, only 27 countries "have expanded their laws to combat foreign terrorist fighter (FTF) by criminalizing the financing for travel for the purpose of terrorism or terrorist training. Some countries already had appropriated laws to combat foreign terrorist fighters. But most countries have yet to take action in this area." It may be recalled that most of the Indians who travelled to Syria and Iraq and later joined ISIS travelled to these countries either to take a pilgrimage or for employment.

Another country in West Asia which is a reason for worry , according to FATF, is Iran which is not a member. However, during a review, the global anti-terror body opined that Iran's failure to cut off terrorist financing is a matter of "exceptional concern."