Key Points

Government sources said that India will send a detailed dossier to the FATF, outlining evidence and concerns regarding the involvement of certain entities and individuals in terror financing and money laundering activities. The dossier will highlight India's findings and demand strict scrutiny and action by the FATF under international protocols.

Sources said that India's intervention at the FATF will have a serious impact. Indian officials will participate in the upcoming meeting scheduled for June and raise this issue with the FATF.

The FATF Plenary had removed Pakistan from the Grey List in October 2022, albeit with the reminder that Pakistan would continue to work with the Asia Pacific Group (APG) to further improve its Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) system.

The last time the FATF had placed Pakistan on its Grey List was in June 2018, when it found several strategic deficiencies concerning the AML and CFT recommendations. Pakistan was told to implement an action plan, which included demonstrating effective action against United Nations-designated terror outfits, individuals, and their associates in terms of financial sanctions, asset seizures, investigation, prosecution, and convictions.

However, owing to its failure to implement all the action points fully, Pakistan was again retained on the Grey List on October 21, 2021. The FATF Plenary noted that Pakistan had completed 26 of the 27 action items in its 2018 plan. The one remaining issue was about continuing to demonstrate that terror financing investigations and prosecutions targeted senior functionaries and commanders of UN-designated terror outfits.

Pakistan was put on the Grey List for the first time in 2008, then removed in 2009, and again it was brought under increased monitoring from 2012 to 2015. Greylisting by the FATF is said to limit a country's access to international loans.

- ANI