‘Exit From Greylist Not Bulletproof’: FATF Warns Pakistan Against Terror Financing | World News

The Financial Action Task Force (FATF), the global terror financing watchdog, has warned Pakistan that its removal from the “grey list” in October 2022 does not make it immune from money laundering and terrorist financing.

FATF President Elisa de Anda Madrazo emphasized that countries, including Pakistan, should continue to implement measures to prevent and deter crimes.

FATF president Elisa de Anda Madrazo said at a press conference in France: “Any country that is on the gray list but is also on the gray list is not bulletproof against the actions of criminals such as money launderers or terrorists. We therefore call on all jurisdictions, including those delisted, to continue their good work to prevent and deter crimes.”

Pakistan was removed from the FATF’s ‘grey list’ in October 2022 and is under monitoring to ensure it implements counter-terrorism financing measures. However, since Pakistan is not a member of FATF, the Asia Pacific Group (APG) carries out the monitoring.

The FATF chief said the list includes several countries and regions that are being placed under increased monitoring due to significant strategic deficiencies in combating terrorist financing and money laundering.

The FATF chief’s comments come amid reports that Jaish-e-Mohammad (JeM) is using digital wallets and masking financial flows to fund terror camps.

Notably, India’s National Risk Assessment 2022 identifies Pakistan as a high-risk source of terrorist financing.

Previously, a report titled ‘Comprehensive Update on Terrorism Financing Risks’ had provided in-depth information on terrorist financing methods and emerging risks, including the increasing involvement of state-sponsored terrorism.

A study contributed by India has highlighted concerns for the South Asian region arising from the state-owned National Development Complex in Pakistan. The report stated that Pakistan remains a high-risk jurisdiction in the region in terms of financing nuclear proliferation.

Calling on various countries, including Pakistan, to continue implementing measures against terrorist financing, Madrazo underlined FATF’s determination to stop such actions worldwide.

“Now, as it relates to terrorist attacks in any location or jurisdiction, FATF remains committed to continuing to strengthen our standards and enforcement through our assessments and process to ensure we can benefit people by providing less terrorist financing,” he said.

Pakistan is under the supervision of APG (Asia Pacific Group), which ensures the implementation of counter-terrorism financing measures.

The FATF concluded its fourth plenary session in Paris, France, chaired by Mexico’s Elisa de Anda Madrazo, who emphasized that the efforts underscore a strong determination to deprive criminals worldwide of their ill-gotten gains.

Delegates and observers from the Task Force’s Global Network of more than 200 jurisdictions participated in three days of discussions to address key issues in the fight against illicit financing, according to an official statement from FATF.

The General Assembly adopted the reports of the first two FATF evaluations as part of the new round of mutual evaluation. Belgium and Malaysia are the first FATF members to be assessed under new, more time-bound and risk-based assessments, which place greater emphasis on countries’ results in combating money laundering, terrorist financing and proliferation financing.

The General Assembly also removed Burkina Faso, Mozambique, Nigeria and South Africa from the list of jurisdictions under increased monitoring upon completion of the Action Plans.