Pakistan’s removal from the Financial Action Task Force (FATF) grey list has raised concerns due to the resurgence of domestic terrorist groups like Lashkar-e-Taiba and Jaish-e-Mohammad. These groups’ continued operational capacity suggests non-compliance with global money laundering and terror financing watchdog recommendations. There are indications that state elements in Pakistan are tolerating or even facilitating the revival of these terrorist organizations.
At the Davos summit, Pakistan agreed to join President Trump’s new ‘Board of Peace’, which includes states with uneven governance and human rights records. This initiative, initially focused on overseeing the Gaza ceasefire, is expanding into a broader project aimed at reshaping global governance outside the United Nations structures. Despite Pakistan’s efforts to portray itself as a responsible international actor, recent events have raised doubts about its credibility in such initiatives.
In October 2022, the FATF removed Pakistan from increased monitoring status. However, concerns persist as unresolved terrorist financing risks remain in the country. The FATF’s decision followed a Pakistani court sentencing Hafiz Saeed, the leader of Lashkar-e-Taiba, to 31 years in prison earlier in 2022. While Saeed was convicted for terrorism financing, questions linger about Pakistan’s commitment to combating terrorism financing effectively.
The report highlights that Pakistan’s behavior post-FATF scrutiny raises doubts about its compliance. Groups like Lashkar-e-Taiba, The Resistance Front (TRF), and Jaish-e-Mohammad continue to operate and fundraise freely within Pakistan. The report suggests that Pakistan should be reconsidered for greater monitoring by the FATF, emphasizing the need for action at the upcoming February plenary meeting.
