Paris: The Financial Action Task Force (FATF) has warned Pakistan that its exit from the greylist in October 2022 does not free it from global scrutiny on money laundering and terror financing. FATF warns Pakistan to remain vigilant in its financial practices.
After FATF’s plenary session in Paris, President Elisa de Anda Madrazo emphasized that countries like Pakistan must continue to strengthen their financial systems and stay alert against illicit funding networks. The continued scrutiny is part of why the FATF warns Pakistan.
“Any country that has been on the greylist is not bulletproof against money launderers or terrorists. We urge all jurisdictions, including those delisted, to keep improving their safeguards,” Madrazo said.
Pakistan left the greylist in 2022 but remains under close observation by the Asia Pacific Group (APG) to prove it is enforcing anti-terror financing measures. Although FATF no longer lists Pakistan, the watchdog continues to track its progress because of ongoing risks. Again, FATF warns Pakistan of the potential consequences of non-compliance.
Reports show that Pakistan-based terror groups such as Jaish-e-Mohammad (JeM) are using digital wallets and hidden financial routes to fund training camps. FATF flagged this as a growing concern in its recent Comprehensive Update on Terrorist Financing Risks report.
India’s National Risk Assessment 2022 also identified Pakistan as a high-risk source of terror financing, linking some operations to the state-run National Development Complex (NDC).
Madrazo clarified that delisting is not the finish line. Thus, FATF warns Pakistan to continue with its reform efforts.
“We expect countries to close loopholes that criminals exploit. Our goal is to cut off the funds that support terrorism and organized crime,” she said.
The Paris plenary wrapped up with Belgium and Malaysia completing reviews under FATF’s new, results-based evaluation system, which focuses on real outcomes rather than procedures. FATF also removed Burkina Faso, Mozambique, Nigeria, and South Africa from the greylist after they fulfilled their action plans.
–IANS
