FATF Warns Pakistan: Exit From Greylist Not An Immunity For Terror Funding

The FATF has cautioned Pakistan that its removal from the greylist does not eliminate risks associated with money laundering and terrorist financing. Ongoing vigilance and compliance with anti-terror financing measures remain essential.

The Financial Action Task Force (FATF) has issued a warning to Pakistan, reminding it that being removed from the 'greylist' in October 2022 does not shield it from money laundering and terrorist financing risks. FATF President Elisa de Anda Madrazo stressed the importance of ongoing vigilance by all countries, including those recently delisted, to prevent criminal activities.

During a press conference in France, Madrazo stated, "Any country that is on the grey list but also exists on the grey list is not bulletproof for actions of criminals, either money launderers or terrorists. So we do invite all jurisdictions, including those who have been delisted, to continue their good work to prevent and deter crimes." This highlights the need for continuous efforts against financial crimes.

Pakistan's Monitoring and Regional Concerns

Although Pakistan was removed from the FATF 'greylist', it remains under follow-up by the Asia Pacific Group (APG) to ensure compliance with anti-terror financing measures. The APG's role is crucial as Pakistan is not an FATF member. The FATF list includes countries with significant deficiencies in countering terror financing and money laundering.

India's National Risk Assessment 2022 identifies Pakistan as a high-risk source for terror financing. A report titled 'Comprehensive Update on Terrorist Financing Risks' sheds light on emerging threats, including state-sponsored terrorism. It underscores concerns about Pakistan's National Development Complex contributing to proliferation financing risks in South Asia.

Global Efforts Against Illicit Finance

The FATF concluded its fourth plenary meeting in Paris under Mexican presidency. Delegates from over 200 jurisdictions participated in discussions addressing key issues in combating illicit finance. The Plenary adopted reports of the first two assessments under new mutual evaluations focusing on results in tackling money laundering and terrorist financing.

Madrazo reiterated FATF's commitment to strengthening standards globally to reduce terrorist financing. "Now, as it relates to terrorist attacks, in any place or jurisdiction, the FATF remains committed to continuing to strengthen our standards and the implementation through our assessment and our process to make sure we can benefit the people by having less terrorist financing," she said.

Progress and Future Steps

The Plenary also saw Burkina Faso, Mozambique, Nigeria, and South Africa removed from increased monitoring after completing their Action Plans. This reflects progress made by these nations in addressing strategic deficiencies identified by FATF. The focus remains on depriving criminals worldwide of their ill-gotten gains through enhanced global cooperation.

The use of digital wallets by groups like Jaish-e-Mohammad (JeM) for funding terror camps has raised alarms about masked financial flows. This development underscores the evolving nature of financial threats that require constant vigilance and adaptation of strategies by countries worldwide.

With inputs from ANI