Terror Financing Trail Exposed: Is FATF Preparing To Grey-List Pakistan Again? | World News

Islamabad: Pakistani Finance Minister Mohammad Aurangzeb issued a warning on the possibility of re -listed in the country’s Gray list of the Financial Action Mission Force (FATF). He emphasized the ongoing challenges that support terrorist groups such as Jaish-e-Mohammed and support terrorist groups that can trigger renewed international examination.

He said that 15 percent of the financial transactions in Pakistan work outside the official regulatory frameworks and lack appropriate supervision and control. This important gap in financial monitoring suggested that Pakistan increased the risk of falling to FATF’s gray list (a status that may have serious economic and diplomatic results).

The main issue is revolving around the financing of terrorism, which continues to attract attention from global guards, and money laundering. Despite previous measures, reports show that irregular money transfer continues to militant organizations through traditional Hawala channels and new digital tools.

Focus on terrorist financing networks

The fact that Pakistan was included in the Fatf Gray list in the past was due to the inability to eliminate the financial networks supporting terrorist groups. Organizations such as Jaish-e-Mohammed and Lashkar-E-Taiba continue to extensive financing operations using informal cash movements, Hawala systems and increasingly sophisticated digital platforms.

Aurangzeb emphasized the need to support Pakistan’s financial regulatory infrastructure to combat these illegal flows. Authorized, developing fintech sectors, digital wallets and crypto currency transactions effectively in failure to regulate the country may expose the country to renewed FATF sanctions, he said.

According to the Pakistan tribune, the minister emphasized the surveillance mechanisms and urgent reforms to strengthen the close gaps that benefit from terrorist financing networks.

A date marked with review and progress

Pakistan was first listed by FATF in 2018 due to global concerns about terrorist financing. The country managed to get out of the gray list in 2022 after efforts to address key compatibility issues.

However, the authorities are concerned about the rapid growth of the new security vulnerabilities and crypto assets that may escape from existing regulations, which emerged by informal FinTech services.

The potential return to the FATF Gray list will affect Pakistan’s international financial stance, foreign investment climate and overall economic health. Authorities continue to monitor and interact with international partners in order to ensure compliance with FATF suggestions and to prevent financing of terrorism.