Detection of terror funds
THE Senate finance committee was told by a State Bank delegation led by the governor that only 34 cases of suspicious transactions were proceeded against in the past five years, while 5,775 Suspicious Transaction Reports, or STRs, were filed in the same period. This is an abysmally low figure and underscores the strong need to strengthen efforts to intercept terror financing.
A new bill is being debated in the Senate to amend the Anti Money Laundering Act 2010 which dilates significantly on the definition of funds considered suspicious in connection with militancy. This is a good start, but in order for efforts aimed at intercepting terror financing to bear fruit, much more will need to be done to boost the detection of these funds in the first place. Without stronger detection, there is little point in strengthening the powers of investigation and prosecution, which is where the bulk of the bill`s emphasis lies.
Banks must play an important role in detecting funds connected with terrorist activity, but banks cannot undertake the challenge on their own. Banks need to know what they are looking for when told to track fund flows and look for tell-tale signs of connections to terrorist activity. To do this, they need some idea of the geography of fund flows and a database of names and entities that are on a watch list, no matter how long the latter may be. Both these elements need to be updated in real time. Currently, the regulations to AMLA 2010 contain guidelines only for detecting money laundering, but very little for the detection of fund flows linked to terrorist activity. In light of the extremely poor track record of the Financial Monitoring Unit to facilitate the detection of funds connected to terrorist financing, there is clearly a need to update these guidelines and include more specific information on the form that fund flows connected with terrorism might take. This is a big task that cannot be left to the FMU and the banks to perform by themselves. The intelligence agencies and other law-enforcement bodies need to play a role in developing these guidelines.
Once detection has been strengthened, the next question to address is the speed with which suspicious funds can be frozen. Currently, AMLA 2010 stipulates a seven-day limit within which suspicious activity must be reported, though in reality STRs can take years before landing on the desk of an investigating officer. With strong guidelines, and stronger compliance requirements for banks, freezing of the funds can come much earlier than it does at the moment. These are the first steps involved in apprehending terrorist facilitators who, contrary to popular belief, actually do use formal banking channels on many occasions. Terrorism cannot be defeated if its facilitators cannot be apprehended, and that cannot happen if the state cannot see them.
Price of free speech
WHILE the debate on the limits of free speech has always been pertinent in a globalised, interlinked and interracial world, it has assumed greater urgency in the aftermath of the Charlie Hebdo killings last week. Particularly so after the French satirical magazine’s latest edition once again included a depiction of the Prophet (PBUH). Pope Francis has also weighed in on the subject, saying that while murder `in the name of God is an absurdity`, freedom of speech should be tempered by respect for faith. Several Muslim countries have voiced disapproval of the latest affront to their beliefs. The massacre at Charlie Hebdo had given rise to expressions of unalloyed sympathy across the world, and rightly so, for no matter what the provocation, settling scores through violence is never justified. From that sympathy, a unity of narrative transcending divisions of faith, ethnicity and nationality had emerged. This is a critical element in fighting the multi-dimensional scourge of religious extremism on a global scale, and it was perhaps that realisation which prompted President François Hollande to publicly acknowledge the fact that Muslims themselves are `the main victims of fanaticism, fundamentalism and intolerance`. The statement, similar to the stance taken recently by German Chancellor Angela Merkel, is especially significant against the backdrop of worrying xenophobic trends in Europe.
A refusal to cave in to threats of violence can be deemed courageous, but the situation in this instance demands a more nuanced view. Charlie Hebdo`s journalists, by re-offending, have opted for a narrow, parochial response instead of seeing resistance to extremist elements as a battle in a much bigger war. As a result, the narrative against extremism has once more become fragmented, skewed towards the acts that insult faith, rather than the actions that violate the norms of all faiths, in this case murder in the name of religion. Such a climate is conducive for voices on the margins to stir the cauldron of hate anew. Their impact is already being felt on the streets of Karachi with violent protests against the new cartoons. Further afield, the lives of millions of peaceful, law-abiding Muslims across the world will become more precarious at the hands of those who conflate Islam with Islamist militancy. Perhaps it is time for world leaders to come together and shape this debate along rational and non-discriminatory lines with a view to the long-term implications of unbridled free speech.
ODI retirements
TWO of Pakistan`s favourite sportsmen Misbah-ul-Haq and Shahid Afridi have decided to retire from ODI matches after next month`s ICC Cricket World Cup scheduled to be held in Australia and New Zealand. The two cricketing stalwarts, who have served the game in Pakistan with distinction over the years, have expressed their resolve to perform their best at the upcoming event in order to make it a memorable departure. However, Misbah will continue to lead Pakistan in the Test matches while Afridi has been named captain for the 2016 T20 World Cup and intends to concentrate his energies on that event which will be held in India. The announcements, though very much on the cards, have rocked Pakistan cricket especially as there are no immediate replacements in sight of those who could be termed as natural successors of the two. However, it has triggered a lively debate regarding the nomination of a possible candidate to lead Pakistan in the ODIs after the World Cup.
Interestingly, the other senior player in the team Younis Khan has made it evident that he has no immediate plans to hang up his boots where ODIs are concerned like his two other colleagues. But whether or not the Pakistan Cricket Board hands him the mantle, or, with an eye on the future, appoints a youngster to lead the team remains to be seen. The names of talented youngsters including opener Ahmed Shehzad, Sohaib Maqsood, Fawad Alam and Asad Shafiq are being discussed in cricketing circles for the coveted position, but since they have not led Pakistan at the international level, their leadership skills remain untested. Besides Misbah and Afridi, Sri Lanka`s Mahela Jayawardene and Kumar Sangakkara have also announced their retirement once the World Cup is over. Some other international players who are likely to call it a day after the extravaganza include Chris Gayle of the West Indies, New Zealand`s Daniel Vettori and Brendon McCullum and Robin Peterson of South Africa.