ISLAMABAD – Pakistan again escapes FATF Grey listing despite New Delhi’s persistent campaign to isolate Islamabad at global level.
As tensions continue unabated between Islamabad and New Delhi, the efforts of Modi led government to have Pakistan placed on Financial Action Task Force (FATF) grey list were unsuccessful, as key member countries opposed the move during the latest FATF plenary session.
India had presented strong arguments highlighting Pakistan’s alleged shortcomings in combating money laundering and terror financing. However, FATF decided to keep Pakistan on the less severe “reporting list,” recognizing the progress Islamabad has made in implementing financial reforms.
Iron friend China played key role by backing Pakistan’s case and calling for leniency, which influenced FATF’s decision. Turkey and Japan also voiced their support for Pakistan, further strengthening its position.
Meanwhile, Lebanon was added to the FATF grey list due to concerns about its financial governance.
Pakistan has reiterated its commitment to continue reforms and fully comply with FATF requirements, aiming for eventual removal from all monitoring lists.
In 2022, Financial Action Task Force (FATF) removed Pakistan from its grey list after being under increased monitoring since 2018 due to deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) framework. FATF’s recent onsite evaluation confirmed Pakistan’s strong commitment and significant progress in addressing all 34 action plan points.
Pakistani leadership, including Prime Minister Shehbaz Sharif credited unified civil-military and political efforts. Opposition parties and former government members also claimed credit for the achievement.
Pakistan’s removal reflects years of reforms strengthening legal, financial, and regulatory systems, and places the country among the top compliant nations globally in AML/CFT standards. While no longer under increased monitoring, Pakistan will continue working with FATF and regional partners to enhance its system further.
