The Financial Action Task Force (FATF) has issued a stern warning to Pakistan, stating that its removal from the greylist in October 2022 does not exempt it from scrutiny regarding money laundering and terrorist financing. FATF President Elisa de Anda Madrazo highlighted that no country, including those recently delisted, is immune to criminal activities. "Any country that is on the grey list or has exited it is not bulletproof against criminal actions, whether by money launderers or terrorists," she said during a press briefing in Paris.

Despite meeting key compliance benchmarks to exit the greylist, Pakistan remains under follow-up by the Asia Pacific Group (APG) to ensure it aligns with FATF's global standards. The greylist identifies countries with significant deficiencies in combating financial crimes and terror funding. Reports indicate that Pakistan-based terror groups, such as Jaish-e-Mohammad, are reportedly using digital wallets and cryptocurrency to finance their operations, raising concerns about the effectiveness of Pakistan's anti-terror financing measures.

India's National Risk Assessment 2022 has classified Pakistan as a high-risk source of terror financing, citing ongoing threats despite its formal compliance with FATF requirements. A recent FATF report also pointed out the rising instances of state-sponsored terrorism in Pakistan and flagged the National Development Complex as a proliferation risk in South Asia.

The FATF's warning comes amid increasing evidence that terrorist groups are exploiting digital platforms for funding. For instance, the explosives used in the 2019 Pulwama attack were reportedly procured through e-commerce platforms. The FATF concluded its fourth plenary session in Paris, attended by representatives from over 200 jurisdictions, where it reaffirmed its commitment to combatting illicit finance globally. The session also saw the removal of Burkina Faso, Mozambique, Nigeria, and South Africa from the greylist after they completed their action plans.

Madrazo reiterated the importance of continued vigilance, stating, "FATF remains committed to strengthening standards and ensuring implementation so we can protect people by reducing terrorist financing worldwide." Pakistan's future economic stability may be at risk if it fails to improve its financial oversight and counter-terrorism measures, as non-compliance could lead to renewed international scrutiny and economic isolation.