ISLAMABAD: India’s efforts to push Pakistan back onto the Financial Action Task Force (FATF) grey list have failed once again, as the global money laundering watchdog decided to maintain Pakistan under a “reporting” mechanism instead of downgrading its status.
Pakistan was placed on the FATF’s increased monitoring list in 2018 due to concerns over its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. However, the country was removed from the grey list in October 2022 after significant improvements were made, completing action items related to AML/CFT.
During the latest FATF meeting, the Indian delegation lobbied for Pakistan’s reentry into the grey list, but faced opposition from China, which supported Pakistan, as well as backing from Turkey and Japan. Despite India’s efforts, FATF chose not to downgrade Pakistan’s status and instead kept it under the reporting mechanism.
Sources indicated that India, supported by Israel, attempted to use the FATF platform to exert pressure on Pakistan, but their narrative was dismissed as negative propaganda. Meanwhile, Pakistan’s progress was recognized by member states, despite India’s diplomatic campaigns against the country.
Federal Finance Minister Muhammad Aurangzeb also highlighted India’s diplomatic failure, noting that the World Bank had approved a loan for the development of the Reko Diq mining project in Pakistan.
