The latest report by the British Government revealed that there is a continuous flow of dirty money from Pakistan to the UK. The report also pointed out the ties and friendship between Pakistan-China. The report “National Risk Assessment of Money Laundering and Terrorist Financing 2020” said that the two countries have close economic links including the significant flow estimated at $1.7 billion in 2017.” The report also stated that “These linkages also enable and disguise illicit funds to be transferred between the UK and Pakistan including through illegal informal value transfers.”
The report also analyzed that Criminals continue to purchase high-value assets, such as real estate, precious gems, and jewelry to launder illicit funds which are transferred from Pakistan to UK or vice-versa. The report also alleged in a major revelation that in 2018, Pakistan was nominated to the Financial Action Task Force (FATF) list of jurisdictions with strategic anti-money laundering and counter-terrorist financing (AML/CTF) deficiencies, known as the ‘grey list’ due to widespread CTF deficiencies. While in Pakistan the debate has already been started that the country is being punished to be the ally of China.
It has also been argued that the real target of FATF is to stop the CPEC and CPEC investment in country. Although, CPEC is an investment initiative and creating good opportunities for Pakistan but campaign is still going on. Same is true in the case of China-Pakistan friendship. When Pakistan refused to abandon China or to be part of campaign against China, then the instrument of FATF is being used.
Czech Republic’s national intelligence agency, Security Information Service (BIS) in its annual report has highlighted the increased proliferation concerns from Pakistan, which also includes North Korea, Syria and Iran. The report also pointed out the role played by Chinese intelligence agencies– Ministry of State Security (MSS) and the Military Intelligence Department (MID) in the central European country. The report emphasized Chinese intelligence officers, who use traditional covers such as diplomats, journalists, or scholars or use social media and “took advantage of the fact that Czech businesses are welcoming towards Chinese investors.”
Besides these, according to the reports of Treasury and Home office, countries like Pakistan, China, Hong Kong, Russia, and United Arab Emirates are listed as the hotspot countries from where the most flow of money takes place. Pakistan is in grey list and trying hard to come out of it. Owing to FATF investment in Pakistan has been greatly impacted. It has also impacted international business linkages and business.