Operation Sindoor brought Pakistan’s support to terrorism out in the open. Pakistani army officials and ministers were seen at the funeral of a terrorist, while the Pakistan government provided financial support to the Jaish-e-Mohammed to build its ranks. India highlighted the proof on global platforms, exposing Pakistan. Now, Pakistan is fearing getting grey-listed by the FATF.
Pakistan’s Finance Minister, Muhammad Aurangzeb, has expressed concern that the country may once again land on the Financial Action Task Force (FATF) “grey list.” In a recent warning, he acknowledged that Pakistan faces a real risk of being placed back under international monitoring, largely due to its links with terror groups such as Jaish-e-Mohammed.
Pakistani Minister Expressed Concern
Finance Minister Muhammad Aurangzeb admitted that nearly 15 percent of financial transactions in Pakistan are being carried out without checks, regulations, or oversight. Such unregulated flows of money, he said, could become a key reason for FATF’s decision.
While the finance minister tried to frame the issue as an economic challenge, experts note that the underlying problem is linked to terror financing and money laundering. Reports suggest that funds are being transferred within Pakistan on a large scale without proper regulation, raising red flags for FATF, which has already placed Pakistan under scrutiny in the past for enabling terrorist financing networks.
Groups like Jaish-e-Mohammed and Lashkar-e-Taiba continue to exploit informal channels such as hawala networks, cash dealings, and increasingly, digital platforms to maintain their funding pipelines. The Pakistani government itself has opened multiple routes for fund transfers, making oversight even harder.
According to The Pakistan Tribune, Aurangzeb stressed the urgent need to strengthen regulatory mechanisms. He cautioned that unless the government takes immediate steps to control digital finance and tighten supervision, Pakistan risks being pushed back onto the FATF grey list.
What Is FATF?
The Financial Action Task Force (FATF) is an international watchdog that works to protect the global financial system from crimes like money laundering, terror financing, and other threats to financial integrity. It was set up in 1989 by the G7 countries and today has over 35 member nations along with regional organizations.
Think of FATF as a global referee for financial practices. Its job is to make sure countries are not being used as safe havens for dirty money or for funding extremist groups. To do this, FATF issues a set of guidelines that all members are expected to follow. It then reviews countries regularly to check how well they are enforcing these rules.
