Global Watchdog Reminds Pakistan Greylist Exit Isn't Immunity
The Financial Action Task Force (FATF) has delivered a clear message to Pakistan. Its removal from the monitoring "grey list" in 2022 does not mean it is free from global scrutiny. The head of the international terror financing watchdog cautioned Islamabad that continued vigilance is essential. This warning comes amid new concerns about Pakistan-based terror groups using digital methods for funding.
Continued Monitoring and Expectations
Speaking after the FATF's plenary session in Paris, President Elisa de Anda Madrazo emphasized that no country removed from the grey list is "bulletproof." She stated that nations like Pakistan must maintain strong systems to combat money laundering and terror financing. "Delisting is not the end of the process," Madrazo stressed. FATF expects countries to continue strengthening their defenses against illicit financial activities.
Pakistan remains under evaluation. The Asia Pacific Group (APG) is conducting a follow-up assessment. This review ensures that Pakistan continues to enforce the anti-terror financing standards it implemented to get off the grey list.
Emerging Risks and Regional Concerns
Madrazo's comments gain significance due to recent reports. FATF's own "Comprehensive Update on Terrorist Financing Risks" flagged an emerging threat. It noted that Pakistan-based groups like Jaish-e-Mohammad (JeM) are increasingly using digital wallets and complex financial flows. These methods help fund training camps and other illicit activities.
India has also voiced strong concerns. Its National Risk Assessment 2022 identified Pakistan as a high-risk source for terror financing. The assessment specifically mentioned entities linked to Pakistan's state-run National Development Complex (NDC). FATF's report incorporated India's inputs, highlighting ongoing regional threats.
The global watchdog reaffirmed its commitment to depriving terrorists of funds through strong standards and ongoing monitoring. During the Paris meeting, FATF also adopted new evaluation reports for Belgium and Malaysia under updated criteria. It removed Burkina Faso, Mozambique, Nigeria, and South Africa from the grey list.
