Pakistan was removed from the FATF Grey List in October 2022 after satisfying the watchdog that it had implemented a 34-point action plan.
India is likely to urge the Financial Action Task Force (FATF) to place Pakistan back on its “Grey List” at the global watchdog’s plenary meeting in October, citing evidence that points to Islamabad’s continued support for terrorist organisations, The Times Of India reported.
According to the report, New Delhi plans to present video footage and other material as evidence before the Paris-based anti-money laundering (AML) and counter-terrorist financing (CTF) watchdog. The move is aimed at bringing Pakistan back under FATF’s enhanced monitoring mechanism.
Pakistan was removed from the FATF Grey List in October 2022 after satisfying the watchdog that it had implemented a 34-point action plan.
The measures included legislative and operational reforms related to anti-money laundering and counter-terrorist financing, along with enhanced monitoring of suspicious transactions and politically exposed persons.
Countries placed on the Grey List are subject to increased FATF monitoring and periodic reviews “to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing”. Such countries can also face difficulties in accessing funds from global financial institutions.
According to The Times Of India, any move by India to push for Pakistan’s return to the FATF Grey List is likely to be closely watched, especially after Islamabad’s efforts to build closer ties with the Donald Trump administration and present itself as a peacemaker.
With Vivek Agarwal, Secretary in the Ministry of Culture, appointed as FATF vice-president, New Delhi appears keen to press the watchdog to hold Pakistan accountable over the alleged proliferation of non-state actors operating from its territory and the alleged use of its financial system for terror-related activities.