The Financial Action Task Force (FATF) has cautioned Pakistan that its removal from the global watchdog’s “greylist” in October 2022 does not make it immune to the risks of money laundering and terror financing.
Speaking at a press conference in Paris following FATF’s fourth plenary meeting, FATF President Elisa de Anda Madrazo said that countries previously under increased monitoring must continue strengthening their frameworks to curb illicit financial activities.
“Any country that is on the grey list but also exists on the grey list is not bulletproof for actions of criminals, either money launderers or terrorists,” Madrazo said.
“We invite all jurisdictions, including those who have been delisted, to continue their good work to prevent and deter crimes.”
Pakistan Still Under Regional Monitoring
Pakistan, though removed from FATF’s greylist in 2022, remains under follow-up by the Asia Pacific Group (APG) — the regional body tasked with overseeing compliance. Pakistan is not a member of FATF but continues to face scrutiny to ensure the sustained implementation of anti-terror financing and anti-money laundering measures.
The FATF greylist identifies countries with strategic deficiencies in combating terror financing and money laundering.
Concerns Over Digital Terror Financing
The FATF president’s comments come amid reports that Jaish-e-Mohammad (JeM) has been using digital wallets to channel funds to terror camps, obscuring financial flows.
India’s National Risk Assessment 2022 also categorises Pakistan as a high-risk jurisdiction for terror financing, with growing concerns over state-backed financing channels.
A recent FATF report titled “Comprehensive Update on Terrorist Financing Risks” highlighted emerging global threats, including the involvement of state actors in financing terrorism. India’s contribution to the study raised alarms about Pakistan’s National Development Complex, noting that the country continues to pose proliferation financing risks in South Asia.
FATF Reaffirms Global Commitment
Madrazo reaffirmed FATF’s ongoing efforts to strengthen global mechanisms against terrorism financing.
“As it relates to terrorist attacks in any jurisdiction, the FATF remains committed to strengthening our standards and implementation to ensure fewer cases of terrorist financing,” she said.
The fourth FATF plenary, held under Madrazo’s presidency, brought together representatives from over 200 jurisdictions to discuss ways to cut off criminal networks from illicit finance.
Key Outcomes from FATF Plenary
According to an official FATF statement, the plenary:
- Adopted the first two assessments under FATF’s new risk-based mutual evaluation system, reviewing Belgium and Malaysia.
- Removed Burkina Faso, Mozambique, Nigeria, and South Africa from the list of countries under increased monitoring, following successful implementation of their Action Plans.
The new round of assessments is designed to be more time-bound and results-driven, placing greater emphasis on countries’ effectiveness in tackling money laundering, terror financing, and proliferation financing.
Ongoing Oversight
While Pakistan’s removal from the greylist marked a milestone, the FATF’s latest remarks underscore that delisting is not permanent immunity. Continuous vigilance, enforcement, and policy reforms remain essential for ensuring compliance with global standards.
FATF’s message is clear: countries must remain proactive in tackling the evolving threats of terror financing and illicit money flows — even after stepping off the greylist.
