Financial Action Task Force (FATF), a global terror funding watchdog, has cautioned Pakistan that its exit from the 'greylist' in October 2022 does not make it immune to terror financing and money laundering.
FATF President Elisa de Anda Madrazo emphasised that countries, including Pakistan, must continue implementing measures to prevent and deter crimes. She was speaking at a press conference after the FATF's plenary session in France.
“Any country that has been on the grey list is not bulletproof against the actions of criminals — be they money launderers or terrorists,” Madrazo said. “We invite all jurisdictions, including those that have been delisted, to continue their good work to prevent and deter such crimes,” she added.
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FATF President Elisa de Anda Madrazo on reports of terror financing via digital wallets in Pakistan: “We continue the process of follow -up after Pakistan’s EXIT from the grey list — the EXIT is NOT BULLETPROOF.” pic.twitter.com/TZ7t99sF4W
Pakistan was removed from the FATF 'greylist' in October 2022 and has been under follow-up to ensure it is implementing the anti-terror financing measures. However, since Pakistan is not a member of the FATF, the follow-up is being conducted by the Asia Pacific Group (APG).
"Delisting is not the end of the process," Madrazo asserted. "We expect countries to strengthen their systems and close the loopholes that criminals exploit."
Madrazo’s remarks came amid reports that certain Pakistan-based terror groups, including Jaish-e-Mohammad (JeM), are using digital wallets and masked financial flows to fund training camps.
The new trends in terror financing methods and the emerging risks were flagged in the FATF's recent report titled 'Comprehensive Update on Terrorist Financing Risks'. India’s National Risk Assessment report in 2022 had also identified Pakistan as a high-risk terror financing source.
