Saudi Arabia stymies US at FATF

WASHINGTON - Saudi Arabia joined Turkey and China in a move to block a US-led attempt this week to place Pakistan on an international terror-financing watch list, according to officials involved in the process, in a rare disagreement between Riyadh and the Trump administration, reported Wall Street Journal on Thursday.

Saudi Arabia’s move on behalf of Pakistan came just days after Islamabad said it would send more than 1,000 troops to the Gulf kingdom, which has expanded its military posture in the region since its 2015 intervention in Yemen’s civil war.

A US effort to reverse the decision on the watch list was under way Wednesday at a meeting in Paris of the Financial Action Task Force, a secretive international body that monitors countries’ efforts to fight terror financing and money-laundering, according to the officials involved in the process.

The officials said the US effort, which included pressure on the Saudis, raised the possibility of a fresh vote on action against Pakistan as soon as Thursday. The Pakistanis were scrambling to shore up support.

Saudi Arabia is a close US ally, with its crown prince, Mohammed bin Salman, forming a personal bond with the family of President Donald Trump. It was Saudi Arabia’s surprise backing that secured the necessary opposing votes to block the US.

If US lobbying is successful and the task force does end up adding Pakistan to its list of countries deemed “high risk” for doing too little to curb terror financing, banks, other lenders and international companies seeking to do business with the South Asian country could rethink financial ties, putting a damper on its already struggling economy.

Pakistan was supported by China and Turkey heading into the FATF working-group meeting earlier this week. Turkey and the US are allies as members of the North Atlantic Treaty Organisation, though they are at odds with one another over actions in Syria.

Riyadh, which didn’t respond to requests for comment, was acting on behalf of the entire Gulf Cooperation Council, the Saudi-dominated bloc of six Persian Gulf nations which are collectively a member of the FATF, said officials from the countries on the task force.

Even if the US fails to get Pakistan on the terror watch list this week, Washington can request that the task force revisit the list at its next meeting in June.

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