Sir: Pakistan now stands grey-listed for its obscure financial transactions. Not long ago, the US welcomed the steps taken by Pakistan, such as, freezing of over US$ 10 million of al-Qaeda assets. Washington provided Islamabad assistance on drafting an Anti-money laundering/Counterterrorist Financing law that meets international standards. Despite incessant Indian propaganda, the USA acknowledged, ‘Pakistan is a priority region for counter terrorist financing, due to the presence of al-Qaeda and other terrorist groups, porous borders, and cash-based economies that often operate through informal mechanisms, such as hawala”. The USA expressed reservations about Indian government’s efforts to stop money laundering in India. Washington expected India to do more to prevent financing of terror networks. USA’s Assistant Secretary of State for Economic and Business Affairs Anthony Wayne told the Senate Banking Committee, “In India, two accounts belonging to terrorist individuals/entities have been identified, but the Government of India has not frozen any assets to date. It is aware of the UN 1267 Committee List, however, and has conducted investigations”. Wayne also noted that “the Prevention of Money Laundering Act (PMLA) became effective on July 1. It provides the statutory basis for the Financial Intelligence Unit (FIU) to perform its functions. It criminalises money laundering and requires banks and other financial institutions and intermediaries to report individual transactions valued over US$ 23,000 to the FIU.” Wayne added, “India has also indicated it wants to join the Financial Action Task on Money Laundering. However, at a recent FATF plenary meeting in Paris, concerns were raised regarding its ability to provide effective international cooperation in a timely manner and to extend mutual legal assistance”. Financial corruption in India is very widespread. World Bank estimated that capital flight of Rs 50 to 100 crore took place in four fertilizer plants projects via Italian firm Snam Projetti. Minimum commission of seven percent is charged on imports of the public sector. Indian government pays no regard to the recommendations adopted by the Financial Action Task Force on money laundering, set up in July 1989 by the Paris summit of the seven most developed countries. The conventional money-laundering techniques (smurfing, cover companies, etc.) are used to the hilt in India. The international agencies should take notice of the fact that India’s lax financial controls are paving way for growth of terrorism. Yet, it is Pakistan, not India that stands grey-listed because of Washington’s China-Russia-Iran bogeys. AEIMEN MALIK Islamabad Published in Daily Times, September 19th 2018.