President Trump is focused on making America a safer, stronger, and more prosperous nation. To realize this vision, he is taking steps towards bold leadership.
Interestingly, he has tools at his disposal that don’t necessarily involve foreign aid or military action. One such tool is the Financial Action Task Force, which serves as a significant global watchdog targeting illegal financial practices.
This task force isn’t bogged down by bureaucratic processes or treaties. Instead, it operates in a dynamic and result-oriented manner. By controlling access to the global financial network, the Financial Action Task Force can compel countries that support terrorism to reform. It effectively puts pressure on capital and markets, aligning well with the president’s deal-oriented approach.
Take, for example, the real-world impact of the task force. Back in 2018, it grey-listed Pakistan because it failed to address terrorist financing. The consequences for Pakistan were immediate: foreign investments plummeted, banks became cautious, and multilateral lenders pulled back. Financial restrictions truly worked.
The pressure didn’t stop there. Over four years, Pakistan enacted a slew of laws meant to empower regulators, freeze assets of banned groups, and reform prosecutorial statutes. As a result, the Financial Action Task Force confirmed that Pakistan completed all 34 required actions and was removed from its grey list in 2022.
Even after its removal, Pakistan is still monitored to ensure compliance. The Financial Action Task Force and its members, including the US, are committed to ongoing assessment. Considering the reforms in Pakistan, extending its good faith in this regard would send a clear message: countries that adhere to regulations will receive acknowledgment.
This isn’t about cultivating friendships; it’s about reinforcing the credibility of the Financial Action Task Force. Recognizing nations responding to pressure with effective reforms sends a strong signal: the system works, and those who perform can gain legitimacy.
On the other hand, there’s Lebanon, which offers a cautionary tale. Once a financial hub, it has faced one of the most severe economic crises due to corruption and mismanagement since 2019. Its former Central Bank Governor, Riad Salamé, has been implicated in international investigations for substantial money laundering. Trust in Lebanon’s banking system has evaporated.
During this turmoil, Hezbollah—designated a terrorist organization by the US—has exploited the situation, using drug smuggling and unregulated remittance networks for funding.
The Financial Action Task Force aims to combat issues like this, but Lebanon isn’t grey-listed.
If it were, that would apply pressure on Lebanon’s elite, limiting Hezbollah’s funding sources and exposing Iran’s influence. The global financial system has its protocols, and it’s essential they be enforced.
Other nations also need oversight. Turkey finds itself in a grey area due to inconsistent compliance, and Nigeria’s deep-rooted corruption and informal economy signal potential risks for illegal financial flows. These grey economies blur the lines between legality and criminality. The Financial Action Task Force presents the US with a way to spotlight these issues and push for necessary reforms without direct intervention.
This task force complements Trump’s strategy for global engagement. It emphasizes measurable outcomes and tangible results, focusing on enforcement and accountability rather than ideology.
To fully leverage the Financial Action Task Force’s capabilities, President Trump should:
- Establish compliance as a prerequisite for trade access, investment transactions, and defense collaborations.
- Consider adding Lebanon to the list if warranted.
- Highlight successful examples like Pakistan to demonstrate that pressure can incite real change.
- Expand the task force’s scope to address issues like money laundering involving digital assets, as well as financial aggression from states like Russia and China.
- Enhance domestic credibility through strict implementation of the Corporate Transparency Act and aggressive pursuit of high-profile money laundering cases.
Some may argue that nationalism undermines multilateralism. However, the Financial Action Task Force isn’t akin to the United Nations. It’s a coalition that enforces financial regulations without being bogged down by requests—access can be granted or denied. That’s why it’s effective.
The Financial Action Task Force allows the US to shape global actions through compliance, all without military intervention, foreign aid, or drawn-out negotiations—just access or the loss of it.
In a world where power increasingly hinges on finance, the ability to determine who can access capital is crucial for maintaining legitimacy. Trump seems to grasp this concept. The Financial Action Task Force becomes a contract: meet the criteria.
We’ve observed the benefits that the Financial Action Task Force has had on Pakistan. By using this nation as a positive example, Trump should advocate for applying similar pressure on other countries.
This isn’t about promoting globalism; it’s about leveraging power, illustrating a path to a safer, stronger, and more prosperous future articulated in American terms.
