Indian authorities plan to inform the Financial Action Task Force (FATF) about recent evidence related to terror bases in Pakistan, destroyed during Operation Sindoor.
FATF typically evaluates countries based on their compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
Due to the Pahalgam attack, India aims to share evidence showing Pakistan’s support for banned terrorist groups with the FATF.
In October 2022, FATF removed Pakistan from its Grey List, but Pakistan was still required to improve its AML/CFT system with the Asia Pacific Group’s help.
Pakistan had been on the FATF Grey List before, from June 2018, due to failures in addressing terror financing and actions against terror groups.
In October 2021, Pakistan was again kept on the Grey List due to incomplete action on terror financing investigations and prosecutions.
FATF’s Grey Listing limits a country’s access to international loans, making it a significant pressure point for Pakistan.
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