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Govt may move to include Pak back in FATF grey list
Financial Express Lucknow
|May 02, 2025
AS PART OF its escalatory matrix against Pakistan for the terror attack in Pahalgam, India is considering two specific moves aimed at curbing financial flows that aid the neighbour fund terror activities.
The first is to make a concerted effort to try and bring back Pakistan into the 'grey list' of Financial Action Task Force (FATF), the global money laundering and terror financing watchdog, according to two people in the know.
Pakistan was put in the 'grey list' in June 2018, and faced "increased monitoring" till it was removed in October 2022. Being in this list adversely impacts FDI and capital flows as businesses have to undertake enhanced due diligence. Government officials said this had helped curtail illicit fund flows from Pakistan into India, especially into J&K.
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