The Financial Action Task Force (FATF), the global watchdog for combatting terror financing and money laundering, has cautioned Pakistan that its removal from the “greylist” does not make it immune to financial crimes linked to terrorism.
Speaking at a press conference in France following the FATF’s fourth plenary meeting, the organisation’s president, Elisa de Anda Madrazo, stressed that all countries must sustain efforts to curb illicit flows of money and deter crimes.
“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. So we do invite all jurisdictions, including those who have been delisted, to continue their good work to prevent and deter crimes,” Madrazo said.
Pakistan Still Under Monitoring
Pakistan was officially removed from the FATF “greylist” in October 2022 after showing progress in implementing anti-terror and money laundering reforms. However, the country remains under follow-up monitoring led by the Asia Pacific Group (APG), as Pakistan is not a full FATF member.
The “greylist,” Madrazo explained, includes countries identified as having “strategic deficiencies” in countering terror financing and money laundering. Those jurisdictions are placed under enhanced monitoring until they address the gaps highlighted by FATF reviews.
Her warning arrives amid reports that groups such as Jaish-e-Mohammad (JeM) are using digital payment systems to conceal funds and finance operations, adding new challenges for global watchdogs. India’s National Risk Assessment 2022 report has likewise classified Pakistan as a “high-risk” source of terror financing in South Asia.
FATF’s review coincides with broader concerns over state-linked financial activities in Pakistan. A detailed study titled ‘Comprehensive Update on Terrorist Financing Risks’ underscored the emergence of state-sponsored channels of terror funding.
India contributed significantly to the research, which flagged the role of entities such as Pakistan’s National Development Complex in financing proliferation activities. The report concluded that Pakistan remains one of the region’s highest-risk jurisdictions for such threats.
Reiterating FATF’s zero-tolerance policy toward terror-linked finances, Madrazo urged countries to maintain vigilance and enforce global standards beyond their delisting status. “Now, as it relates to terrorist attacks, in any place or jurisdiction, the FATF remains committed to continuing to strengthen our standards and the implementation through our assessment and our process to make sure we can benefit the people by having less terrorist financing,” she said.
FATF Removes South Africa, Nigeria From Increased Monitoring
The FATF’s three-day plenary in Paris, chaired under Mexico’s presidency, focused on tightening global defensive frameworks against illicit finance. Representatives from over 200 jurisdictions and observer organisations participated in discussions aimed at depriving criminal networks of their proceeds.
At the session, members reviewed and adopted the first two evaluations conducted under FATF’s new round of mutual assessments. Belgium and Malaysia became the first countries to be examined under the updated, risk-based system, which places greater emphasis on measurable results in addressing money laundering, terrorist financing, and proliferation financing.
In another major development, FATF announced that Burkina Faso, Mozambique, Nigeria, and South Africa had been removed from the list of jurisdictions under increased monitoring after meeting their respective action plan targets.
As Pakistan continues to face scrutiny through the APG’s oversight mechanism, the FATF’s message remains clear: delisting is not a declaration of safety but a call for constant vigilance against financial crimes threatening global security.
