The global terror funding watchdog, Financial Action Task Force (FATF), has warned Pakistan that being removed from the grey list in October 2022 does not shield it from international scrutiny concerning terror financing and money laundering. President Elisa de Anda Madrazo emphasized during a press conference in France following the FATF’s plenary session that countries like Pakistan must stay vigilant and committed to combatting illicit financial activities even after their delisting.
Madrazo’s statements were interpreted as a direct message to Islamabad, which was taken off the FATF’s increased monitoring list after undergoing four years of compliance evaluations. Pakistan is presently undergoing follow-up assessments by the Asia Pacific Group (APG) to ensure the sustained enforcement of anti-terror financing standards.
The FATF president stressed, “Being delisted does not mark the end of the process. We anticipate nations to fortify their systems and eliminate the vulnerabilities exploited by criminals.” These remarks coincided with reports revealing that Pakistan-based terror organizations like Jaish-e-Mohammad (JeM) are resorting to digital wallets and concealed financial channels to finance training camps, an emerging risk highlighted in the FATF’s recent “Comprehensive Update on Terrorist Financing Risks” report.
India’s National Risk Assessment 2022 has designated Pakistan as a significant source of terror financing, particularly through entities associated with the state-run National Development Complex (NDC). The FATF report, incorporating India’s inputs, underscored persistent regional threats stemming from state-sponsored terrorism and proliferation financing.
Madrazo affirmed the FATF’s unwavering commitment to enhancing global standards and ensuring implementation through evaluations and monitoring to deprive terrorists and criminals of their financial lifelines. The recent Paris plenary concluded by approving two new mutual evaluation reports based on updated, results-driven criteria. Belgium and Malaysia became the inaugural members evaluated under the new framework, prioritizing tangible outcomes over procedural adherence.
Furthermore, the FATF announced the removal of Burkina Faso, Mozambique, Nigeria, and South Africa from the grey list after successfully fulfilling their action plans.