Paris: Its removal from the greylist does not provide immunity against scrutiny over money laundering and terror financing, Pakistan was warned by the Financial Action Task Force (FATF) on Saturday.
“Any country that is on the greylist or has exited it is not bulletproof against criminal actions, whether by money launderers or terrorists. We invite all jurisdictions, including those who have been delisted, to continue their good work to prevent and deter crimes,” FATF president Elisa de Anda Madrazo said in a press briefing.
Her statement comes amid reports that Pakistan-based terror groups, including the Jaish-e-Mohammed, have been using digital wallets and crypto channels to fund terror operations while masking financial flows.
FATF has also noted that the Pahalgam terror attack could not have taken place without financial backing and without any route to transfer funds between terrorists and supporters.
Madrazo made it clear that all countries, including those recently delisted, must continue tightening safeguards against illicit financial activities.
Pakistan is not an FATF member, but it remains under follow-up by the Asia Pacific Group (APG) though the country met key compliance benchmarks to exit the greylist in 2022. Such follow-up ensures Islamabad continues to meet FATF’s global anti-money laundering (AML) and counter-terror financing (CTF) standards.
The greylist, formally known as the list of jurisdictions under increased monitoring, identifies countries with “strategic deficiencies” in curbing financial crimes and terror funding. India’s National Risk Assessment 2022 has highlighted Pakistan as a high-risk source of terror financing, citing persistent threats despite formal FATF compliance.
The FATF, in a recent report, also noted rising instances of state-sponsored terrorism and flagged Pakistan’s National Development Complex as a proliferation risk in South Asia.
The organisation, in July this year, reported that explosives used in terrorist attacks in India were procured through e-commerce platforms. The revelation came in connection with attacks in Pulwama and at the Gorakhnath temple in Uttar Pradesh.
Digital platforms, including social media, messaging apps, and crowdfunding sites, are increasingly being exploited for terror financing. Reported forms of support range from direct financial contributions to logistical or material assistance, as well as the provision of training.
The Pulwama attack in 2019, planned and carried out by Jaish-e-Mohammed, saw transfer of large quantities of explosives in the country. A massive amount of the components used in the explosive devices used in the attack was acquired via e-commerce platforms.
The fourth plenary session of FATF concluded in Paris under Madrazo’s presidency. Attended by delegates from over 200 jurisdictions, the session approved the first mutual assessments under FATF’s new risk-based framework and removed Burkina Faso, Mozambique, Nigeria, and South Africa from the greylist after completion of their action plans.
“FATF remains committed to strengthening standards and ensuring implementation so we can protect people by reducing terrorist financing worldwide,” Madrazo said.