Is India planning to take action against Canada on terror funding?

The India-Canada diplomatic row may be taking a new turn. After Canada withdrew 41 of its diplomats from India, following New Delhi’s demand of parity, it is being reported that India may move the Financial Action Task Force (FATF). Reports have it that Delhi is considering moving the Paris-based watchdog, which oversees the implementation of legal, regulatory and operational measures to combat money laundering and terror financing, against Ottawa for its soft stance towards terror elements. The Sunday Guardian reported that despite sharing “credible and clinching” evidence, Canada has taken no steps against terror funding operations on its soil. What is the FATF? What does it do? How does it figure into the India-Canada row? We have you covered. What is the FATF? Commonly known as the world’s terrorism financial watchdog, the FATF “leads global action to tackle money laundering, terrorist and proliferation financing.” Formed in 1989, it is a 39-member group that works to ensure that the flow of money in the global financial system is not misused to fund terrorist activities. As the FATF website states, “it researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action”. The FATF, which meets three times per year, conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it. The reviews are carried out by FATF and FATF-Style Regional Bodies (FSRBs), which then release Mutual Evaluation Reports (MERs). For the countries that don’t perform well on certain standards, time-bound action plans are drawn up. If the countries don’t meet the standards set by the FATF, they are placed under Increased Monitoring or a High Risk Jurisdiction. These are often externally referred to as “the grey and black lists”. As per the FATF, countries in the black list are those who support terror funding and money laundering activities. On the other hand, the grey list is for countries that are considered safe haven for supporting terror funding and money laundering. This inclusion serves as a warning to the country that it may enter the blacklist. Notably, the FATF’s role in combating terror financing became prominent after the 9/11 terror attacks in the United States.

Which countries are on the FATF watch list? In February, the FATF said that Myanmar, Iran and North Korea continue to be on the ‘black list’. Additionally, the United Arab Emirates (UAE), Turkiye, Jordan, South Africa and 20 other nations will be in its ‘grey list’. Pakistan was removed from the ‘grey list’ in October last year after being on it for four years. Reacting to the announcement, India had then said: “It is in global interest that the world remains clear that Pakistan must continue to take credible, verifiable, irreversible and sustained action against terrorism and terrorist financing emanating from territories under its control.”

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How does FATF figure in the India-Canada row? As India and Canada’s ties deteriorate over the allegation made by Justin Trudeau that New Delhi had a role in the killing of Khalistani leader Hardeep Singh Nijjar , the Sunday Guardian quoting sources has said that India is considering approaching the FATF on the matter. It is reported that India will present the watchdog with a dossier containing new and old information on how Ottawa provides a safe space for terrorists to thrive and operate. “With Canada seeking to divert the focus from the core issue of Khalistani elements having a free run on its soil, India has no other option but to report Prime Minister Justin Trudeau’s inaction against pro-Khalistan elements in his country to FATF. India is, therefore, planning to collect evidence of terror funding and financing emanating from Canada and present it to FATF,” a person aware of the development told The Sunday Guardian. Since September when Trudeau first made the allegation, which India has refuted, calling it absurd, India has been sharing information and evidence on Khalistani terror operating on Canadian soil. [caption id=“attachment_13293912” align=“alignnone” width=“640”] A protester raises his fist as he speaks, during a protest outside India’s consulate, a week after Canada’s Prime Minister Justin Trudeau raised the prospect of New Delhi’s involvement in the murder of Hardeep Singh Nijjar in British Columbia, in Toronto, Ontario, Canada. Ties have worsened between the two countries since September. File image/Reuters[/caption] Recent dossiers reveal the presence of a Khalistan terror network operating in Canada. It identifies several Canadian nationals purportedly linked to the proscribed International Sikh Youth Federation (ISYF) and the Khalistan Liberation Force (KLF). Even on Nijjar, India had shared information about his purported links with Pakistan-based KTF chief Jagtar Singh Tara. He also was actively involved in spotting, networking, training, funding, and operationalising KTF module members after taking over the leadership of KTF in Canada in 2015. The Ministry of External Affairs had also said: “Terrorism is being funded and supported by our western neighbour Pakistan, but the issue of safe havens and places to operate are being provided abroad, including in Canada. “We would want the Canadian government to not provide safe havens to terrorists and to take action against those who are facing terrorism charges or send them here to face charges.” How bad is the fallout between India-Canada? India-Canadian relations have plummeted to a new low since September. Shortly after Trudeau made the allegation, India suspended visa services to all Canadians. This has now been followed by Canada withdrawing its 41 diplomatic staff in India, alleging that New Delhi is in contravention of the Vienna Convention on Consular Relations. This has been categorically refuted by India, with External Affairs Minister S Jaishankar saying last Sunday that parity was provided for by the Vienna Convention. “We invoked parity because we had concerns about continuous interference in our affairs by Canadian personnel. We haven’t made much of that public. My sense is over a period of time more stuff will come out and people will understand why we had the kind of discomfort with many of them which we did,” said Jaishankar. With inputs from agencies