The double-used equipment seized by India from a Pakistan-bound merchant ship in 2020 is linked to the national development complex in Islamabad, which is involved in the country’s missile development programme, a new report by the Financial Action Task Force states.
The seizure of double-used equipment used to develop Indian missiles was mentioned in a report by the multilateral financial watchdog, highlighting the vulnerability of the global financial system.
The report listed the incidents under the section on misuse of the Maritime and Shipping sector, including transporting a variety of goods, including dual-used equipment.
‘In 2020, Indian custom authorities seized Asian ships bound by Pakistan. During the investigation, Indian authorities confirmed that the document had incorrectly declared double use items of cargo,” the FATF report said.
“Indian investigators have identified the items shipped as “autoclaves.” It is used for insulation and chemical coatings of sensitive high-energy materials and missile motors,” the report states.
He said these sensitive items are included in the Missile Technology Control Regime (MTCR) dual use export control list.
The bill of lading of the seized cargo provided evidence of a “link between importers and national development facilities” involved in the development of long-range ballistic missiles.
The export of equipment, such as autoclaves, without formal approval from various authorities, is in violation of existing laws, the FATF said.
Pakistan’s National Development Complex (NDC) has played an important role in the development of Pakistan’s missile programmes. India seized dual-used equipment from the merchant ship Dakuiyun at Kandra port in Gujarat on February 3, 2020.
Indian customs authorities had stopped the ship to falsely declare an autoclave that could be used to construct missiles as “industrial dryers.”
The report said there remains a significant vulnerability throughout the global financial system in combating weapons of mass destruction (WMD) funding.
“Despite the serious threat posed by Proliferation Financing (PF), only 16% of countries assessed by the FATF and its global network have demonstrated high or substantial effectiveness in the process of assessing the implementation of targeted financial sanctions under UN Security Council resolutions on proliferation.
The report said those seeking to fund the spread of WMD will continue to capitalize on the weaknesses of existing management unless the public and private sectors urgently strengthen technical compliance and effectiveness.
This report provided a detailed analysis of the evolving methods and techniques used to avoid PF-related sanctions. “Illegal actors are employing increasingly sophisticated methods to avoid sanctions and avoid export controls,” he said.
