Pakistan’s legal framework appears to align with the Financial Action Task Force’s (FATF) recommendations on paper, but enforcement on the ground remains inconsistent. The FATF’s 2025 report highlights a rise in digital methods used by Pakistan-linked terror groups to evade scrutiny, shifting from banks to fintech platforms.
A national security analyst pointed out that Pakistan-based terrorist organizations like Jaish-e-Mohammad and Lashkar-e-Taiba have modernized instead of being dismantled. These groups allegedly exploit humanitarian crises to fund terror activities, using digital wallets like EasyPaisa and cryptocurrencies to avoid detection.
The report emphasizes the need for the US and EU to push Pakistan for outcome-based evaluations focusing on sustained investigations, asset seizures, and network dismantling at the upcoming FATF meeting. It calls for scrutiny on digital payment systems and charities exploiting regulatory gaps to ensure Pakistan’s reforms lead to tangible disruptions.
