United States and India were reportedly spearheading an effort to get Pakistan included in the watchdog's worldwide money laundering and terror-financing "grey list".
Security analyst Amir Rana said the Pakistani move may have been in anticipation of the meeting in Paris next week of the Financial Action Task Force (FATF), an inter-governmental organisation to combat money laundering and terrorist financing.
In a move that could be considered a win for India's diplomatic policy, Pakistan has promulgated an ordinance that declares terror group Jamaat-ud-Dawah (JuD) of Hafiz Saeed as a terrorist organisation, also seeking a ban on it. Pakistan has not officially banned Hafiz Saeed linked JuD and FIF.
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The reports of the ordinance being signed by Pakistan's President were also confirmed by the Pakistani National Counter-Terrorism Authority (NACTA).
Intelligence gathered by Indian agencies and shared with the FATF at its plenary in June and then in November past year stressed that Pakistan's action against terror groups was a "paper activity", devoid of any groundwork and was meant to hoodwink the worldwide community.
Earlier on Feb 2, the National Security Committee (NSC) had directed the "ministries concerned to complete the few outstanding actions at the earliest".
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The operations in Pakistan of Saeed's extensive network - which includes 300 seminaries and schools, hospitals, a publishing house and ambulance services - has been a particular concern of the United States. Pakistan has informed the committee of the decision it has chose to undertake. During the upcoming FATF meeting, the report will be taken up and Pakistan's efforts towards eliminating funding for Hafiz Saeed and other groups will be evaluated.
"We have to march with the changing times", Ausaf said, adding that the new laws would enable the government to track fundraising activities of all the UN-proscribed groups and take punitive action such as freezing their assets.
Saeed, founder of Lashkar-e-Taiba (LeT), has been designated a "terrorist" by the United Nations and had a $10m bounty placed on him by the U.S. in 2012. However, its listing can affect global transactions from the country concerned as those would then become subject to greater scrutiny. The "grey list", in which Pakistan was last named in 2012, affects worldwide transactions from the country concerned as these would then be subject to greater scrutiny.
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