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India to Lobby With FATF To Revert Pakistan To Its Grey List

Pakistan failed to comply with anti-money laundering and terror financing rules, says India

New Delhi: After Operation Sindoor, India is expected to strongly lobby with the Financial Action Task Force (FATF) to revert Pakistan to its ‘grey list’ for failure to comply with anti-money laundering and terror financing rules. India senses that Pakistan has failed to act on terror emanating from its territory and the ‘terror-supporting’ country has been diverting funds from multilateral agencies to buy arms and ammunition, a top source said on Friday.

The decision of the government came in the shadow of tensions between India and Pakistan that have heightened following the terror attack in Pahalgam on April 22, in which 26 civilians were killed. “We will be taking it up (with the FATF). Countries, which fail to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing, and are under increased monitoring, are placed in the grey list of FATF,” the source said.

When FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. The FATF plenary, a decision-making body, meets thrice a year — in February, June and October.

In 2018, Pakistan was placed in the FATF’s grey list and had given an action plan for the country to curb money laundering and terror financing. Following that, in 2022, FATF removed Pakistan from the list. India had earlier this month opposed release of the tranche of the IMF's bailout package to Pakistan.


( Source : Deccan Chronicle )
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