FATF Warns Pakistan: Grey-List Exit Not A Shield
The Financial Action Task Force (FATF) has cautioned Pakistan that its removal from the grey list in October 2022 does not make it immune to scrutiny over money laundering and terror-financing risks. The watchdog underlined that countries exiting the list must continue with strict monitoring and cannot assume “bullet-proof” protection.
Pakistan’s Compliance Record
Pakistan was taken off the grey list after completing key reforms under the anti-money laundering (AML) and counter-terror financing (CTF) frameworks. While this step improved its financial credibility, FATF has stressed that oversight continues even after formal delisting.
Emerging Concerns
FATF pointed out that new risks, including the use of digital wallets and informal financial systems by groups suspected of terror financing, remain areas of concern. International regulators have stepped up vigilance to ensure that reforms are implemented in practice and not just on paper.
Risk Of Renewed Action
The global body has warned that any backsliding in enforcement could result in renewed international pressure or a return to monitoring lists. The message highlights that sustained compliance is crucial for Pakistan’s financial stability and international reputation.
