Expert believes Omar Sheikh’s acquittal not to impact Pakistan’s status on FATF grey list

A leading expert on South Asia affairs has expressed that the recent acquittal of Omar Shaikh by the Supreme Court will not have any impact on Pakistan’s Financial Action Task Force (FATF) status in the ongoing plenary.

“Contrary to some reportage, the Omar Sheikh acquittal should have no bearing on deliberations about Pakistan's FATF status, which relates to a very specifically defined list of items on its Action Plan-none of which relate to Sheikh. Though, there are reputational considerations,” said Michael Kugelman, deputy director of the Asia Program at the Wilson Center, in a tweet post.

The analyst was of the view that that the question is whether Pakistan would remain on the ‘grey list’ or be off it, as it won’t be blacklisted.

“The issue isn't whether it'll be blacklisted (it won't), but more so if it comes off the "gray list." A good chance it'll stay, given member views that some Action Plan items not complete.”

Meanwhile, Pakistan has expressed optimism regarding its FATF status. The Paris based watchdog begin its plenary on Monday. The four day meeting would review Pakistan’s progress and decide about its fate with respect to grey list.

FATF after October 2020 Plenary has strongly urged Pakistan to continue working on implementing its action plan to address its strategic deficiencies, including by (i) demonstrating that law enforcement agencies are identifying and investigating the widest range of TF activity and that TF investigations and prosecutions target designated persons and entities, and those acting on behalf or at the direction of the designated persons or entities; (ii) demonstrating that TF prosecutions result in effective, proportionate and dissuasive sanctions; (iii) demonstrating effective implementation of targeted financial sanctions against all 1267 and 1373 designated terrorists and those acting for or on their behalf, preventing the raising and moving of funds including in relation to non profit organisations (NPOs), identifying and freezing assets (movable and immovable), and prohibiting access to funds and financial services; and (iv) demonstrating enforcement against TFS violations, including in relation to non profit organisation NPOs, of administrative and criminal penalties and provincial and federal authorities cooperating on enforcement cases.