Key Takeaways
- FATF warns Pakistan that greylist exit doesn’t provide immunity from terror financing
- Global watchdog emphasizes continued vigilance against money laundering
- Pakistan-based groups using digital wallets for terror funding, reports indicate
The Financial Action Task Force (FATF) has issued a stern warning to Pakistan, clarifying that its removal from the ‘greylist’ in October 2022 doesn’t grant immunity against terror financing and money laundering activities.
FATF President’s Strong Message
FATF President Elisa de Anda Madrazo emphasized that all countries, including recently delisted nations like Pakistan, must maintain robust anti-crime measures. Speaking at a press conference following FATF’s plenary session in France, she stated: “Any country that has been on the grey list is not bulletproof against the actions of criminals – be they money launderers or terrorists.”
She added: “We invite all jurisdictions, including those that have been delisted, to continue their good work to prevent and deter such crimes.”
Ongoing Monitoring Process
Pakistan’s removal from the greylist came with continued oversight. Since Pakistan isn’t an FATF member, the Asia Pacific Group (APG) is conducting follow-up assessments to ensure anti-terror financing measures remain implemented.
“Delisting is not the end of the process,” Madrazo asserted. “We expect countries to strengthen their systems and close the loopholes that criminals exploit.”
Emerging Terror Financing Threats
The warning comes amid concerning reports about Pakistan-based terror groups, including Jaish-e-Mohammad (JeM), adopting sophisticated methods. These organizations are reportedly using digital wallets and masked financial flows to fund training camps.
These new terror financing trends were highlighted in FATF’s recent report ‘Comprehensive Update on Terrorist Financing Risks’. The findings align with India’s 2022 National Risk Assessment, which identified Pakistan as a high-risk terror financing source.
