The Financial Action Task Force (FATF) on Saturday warned Pakistan that being removed from the greylist in October 2022 does not render it bulletproof against money laundering or terrorist financing scrutiny. FATF President Elisa de Anda Madrazo explained, “Any nation that is greylisted or has come out of it is not bulletproof against criminal activities, either by money launderers or terrorists.”. We call on all jurisdictions, including delisted ones, to persist with their good efforts to prevent and deter crime.
Pakistan Needs to Continue Enhancing Anti-Money Laundering Controls
Madrazo emphasized that all nations, including newly delisted ones, need to strengthen measures to block illegal financial transactions. Her statement comes after reports that terror organizations based in Pakistan, such as Jaish-e-Mohammad, have utilized digital wallets and crypto channels to finance terror activities while masking financial flows.
Even though Pakistan achieved the most critical milestones to leave FATF’s greylist, it is still under Asia Pacific Group (APG) follow-up because it is not a FATF member. This follow-up helps ensure that Pakistan keeps on harmonizing with FATF’s international anti-money laundering (AML) and counter-terror financing (CTF) standards.
Knowing FATF Greylist and Pakistan’s Risk
The greylist, officially the list of jurisdictions subject to enhanced monitoring, lists countries with “strategic deficiencies” in hindering financial crimes and terror financing.
India’s 2022 National Risk Assessment warned against Pakistan as a high-risk source of terror financing, pointing towards enduring threats in spite of official FATF compliance. A recent FATF report also cautioned against increased state-sponsored terrorism and included Pakistan’s National Development Complex as a proliferation risk in South Asia.
Terror Financing in India Tied to Pakistan-Based Terrorists
In July 2025, FATF announced that e-commerce websites were used to source the explosives involved in terror attacks in India. Some of these were the Pulwama attacks and the Gorakhnath temple attack in Uttar Pradesh.
Terror financing is increasingly being utilized on digital platforms such as social media sites, messaging apps, and crowdfunding platforms. Types of support include monetary contributions, material or logistical support, and training.
The 2019 Pulwama attack, carried out by Jaish-e-Mohammad, included large-scale movements of explosives in India, much of which was procured through online platforms. The terror attack at Pahalgam also needed financial support and safe channels to move money from terrorists to supporters.
FATF’s Most Recent Plenary Session and Greylist Updates
FATF has just ended its fourth plenary session in Paris, at which over 200 jurisdictions were represented by their delegates. The meeting endorsed the first FATF mutual assessments based on FATF’s new risk-based approach. Burkina Faso, Mozambique, Nigeria, and South Africa were delisted from the greylist after they effectively implemented their action plans.
Madrazo reiterated FATF’s global purpose and stated, “FATF continues to be dedicated to reinforcing standards and making them happen so we can safeguard people by combating terrorist financing globally.
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