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Anti Terror Financing: Pakistan Finance Minister’s warning- FATF threatened to return in gray list
Samira Vishwas | August 25, 2025 4:24 PM CST

News India Live, Digital Desk: Anti Terror Financing: Pakistan is once again facing the threat of joining the gray list of international financial action work force (FATF). Pakistan Finance Minister Mohammad Aurangzeb himself has expressed concern over the possibility, mainly due to the constant challenges facing the financial transactions received by terrorist groups like Jaish-e-Mohammed. This situation can become a subject of renewed investigation by the international community. Recently reports indicate that the estimated 15 percent financial transactions in Pakistan are getting out of the formal regulatory structure, which is not being properly monitored, due to this major decrease in financial monitoring, the risk of Pakistan’s arrival in the gray list of FATF has increased again. It has been continuously emphasizing that strict monitoring of FATF is important to make Islamabad accountable, so that its financial mechanism is not misused by extremist network. According to The Diplomatic Insight report, at the FATF summit in France on 13 June, 2025, India proposed to put Pakistan in the gray list again, which he had cited for alleged Pahalgam attack and allegations of sponsoring terrorist groups. In FATF’s widespread update report on Terrorist Financing Risk of July 2025, it has also been emphasized that some terrorist organizations have been getting financial and other types of support from many national governments. Organizations like Jashe-e-Mohammed and Lashkar-e-Taiba (Lashkar-e-Taiba) are still growing in informal channels such as Hawala Neturns, cashless and fast digital. Maintaining their funding operations using the platform. However, the authorities are now concerned about the new weaknesses arising out of the rapidly growing popularity of unarjizist fintech services and crypto assets, which can avoid existing rules. Aurangzeb has emphasized the need for immediate reforms to strengthen Pakistan’s financial regulator infrastructure and deal with illegal flows. He believes that without immediate regulation and strict monitoring on digital transactions, the progress of Pakistan with FATF may soon end.


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