India backs FATF, to push watchdog to put Pakistan in grey list

India has strongly defended the Financial Action Task Force (FATF), saying attempts to undermine the global anti-terror financing watchdog are driven by a reluctance to face scrutiny rather than concerns over its functioning. Speaking at a United Nations event on countering terrorism financing, India's Permanent Representative to the UN, P. Harish, described the FATF as a vital institution in the global fight against terrorism financing and money laundering. His remarks came amid Pakistan's repeated criticism of the organisation after being subjected to enhanced monitoring in the past. “Attempts to question its credibility often reflect fear of scrutiny rather than genuine process-related concerns,” Harish said.Although he did not name Pakistan, his remarks came against the backdrop of Islamabad’s repeated allegations that the FATF was politically weaponised when the country was placed on its “grey list” for increased monitoring.
Meanwhile, India is likely to cite video and other evidence of Pakistan continuing its support to terror outfits, seeking to bring back Islamabad under the ‘Grey List’ of Financial Action Task Force at the Oct meeting of the Paris-based antimoney laundering (AML) and counter-terrorist financing (CTF) watchdog. Pakistan was removed from the ‘Grey List’ in Oct 2022 after it managed to satisfy members of FATF about implementation of a 34- point action plan that included initiating legislative and operational reforms, including AML/CTF mechanisms, on enhanced monitoring of suspicious transactions and politically exposed persons. Countries, under the ‘Grey List’, face increased FATF monitoring and are subjected to periodic review “to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing”.