FATF warns Pakistan, says exit from ‘greylist’ not gives it immunity from money laundering & terror financing

Paris: Global terror funding watchdog — Financial Action Task Force (FATF) — has said that it has cautioned Pakistan that its exit from the ‘greylist’ in October 2022 does not make it immune from global scrutiny on terror financing and money laundering.

Speaking at a press conference in France after the FATF’s plenary session, FATF President Elisa de Anda Madrazo has emphasised that countries, including Pakistan, must remain vigilant and committed to combating illicit financial activity even after delisting.

“Any country that has been on the greylist is not bulletproof against the actions of criminals — be they money launderers or terrorists. So we invite all jurisdictions, including those that have been delisted, to continue their good work to prevent and deter such crimes,” Madrazo said.

Pakistan was removed from the FATF ‘greylist’ in October 2022 and has been under follow-up to ensure it is implementing anti-terror financing measures.

However, Pakistan is not a member of the FATF, so the Asia Pacific Group (APG) has been conducting the follow-up.

The list contains various countries and jurisdictions that have been placed under increased monitoring due to significant strategic deficiencies in countering terror financing and money laundering, the FATF President said.

“Delisting is not the end of the process,” Madrazo added.

“We expect countries to strengthen their systems and close the loopholes that criminals exploit.”

Her comments come amid reports that Pakistan-based terror groups such as Jaish-e-Mohammad (JeM) are using digital wallets and masked financial flows to fund training camps — an emerging risk flagged in the FATF’s recent ‘Comprehensive Update on Terrorist Financing Risks’ report.

India’s National Risk Assessment 2022 has identified Pakistan as a high-risk source of terror financing, particularly through entities linked to the state-run National Development Complex (NDC).

The FATF report, which includes Indian inputs, underscores ongoing regional threats from state-sponsored terrorism and proliferation financing.

“The FATF remains committed to strengthening global standards and ensuring implementation through assessments and monitoring,” Madrazo said.

“Our aim is simple — to deprive terrorists and criminals of the funds they rely on.”

The Paris plenary concluded with the adoption of two new mutual evaluation reports under updated, results-based criteria.

Belgium and Malaysia were the first members assessed under the new framework, which emphasises concrete outcomes over procedural compliance.

The FATF also announced the removal of Burkina Faso, Mozambique, Nigeria, and South Africa from the grey list after completing their action plans.

IANS