India is reportedly preparing to push for Pakistan’s return to the Financial Action Task Force (FATF) “grey list” at the watchdog’s upcoming October meeting. New Delhi is expected to present video footage and other supporting material alleging that Pakistan continues to provide space and backing to terrorist organisations.
According to a report by the Times of India, the issue is likely to be raised at the plenary session of the Paris-based body that monitors global standards on money laundering and terror financing.
The move comes in the backdrop of Operation Sindoor, after which several videos surfaced on social media showing senior officials from Pakistan’s military and intelligence agencies attending funerals of individuals killed in the operation. India may use such material, along with other evidence, to strengthen its argument for placing Islamabad back under enhanced monitoring or the grey list.
The development also comes at a time when Pakistan is actively projecting itself as a regional mediator and attempting to improve its diplomatic standing, particularly with the United States. Islamabad has recently engaged in diplomatic outreach efforts, including facilitating discussions involving Washington and Tehran.
Pakistan was removed from the FATF grey list in October 2022 after completing a 34-point action plan. This included reforms related to anti-money laundering systems, counter-terror financing mechanisms, and stricter monitoring of suspicious financial activity and politically exposed individuals.
Countries placed on the grey list are subjected to increased FATF scrutiny and regular reviews due to deficiencies in their systems for tackling money laundering, terrorist financing, and proliferation-related risks. Such designation also often makes access to international funding more difficult.
India is expected to argue at the October meeting that Pakistan has not fully addressed concerns related to terror financing, despite its earlier exit from the grey list after completing the reform agenda.
