India pushes FATF to blacklist Pakistan over terror financing concerns

India has intensified its diplomatic efforts at the Financial Action Task Force (FATF) to have Pakistan placed on the organisation’s blacklist of high-risk jurisdictions for terror financing, according to official sources. The move comes amid renewed scrutiny of Pakistan's compliance with global anti-money laundering and counter-terrorism financing standards.

The FATF, an inter-governmental body that sets international standards for combating illicit financial flows, currently has Pakistan on its grey list since 2018. The grey list indicates that a country has made a commitment to resolve deficiencies in its financial oversight. India has long argued that Pakistan has not done enough to curb the activities of terrorist groups like Lashkar-e-Taiba and Jaish-e-Mohammad, which operate from its soil. New Delhi has submitted evidence to the FATF of continued militant fundraising and training camps on Pakistani territory.

If placed on the black list, Pakistan would face severe economic sanctions, including reduced access to international financial markets and restrictions on aid from institutions like the World Bank and the International Monetary Fund. India's push is likely to face resistance from China, which has historically blocked efforts to sanction Islamabad at the FATF.

Pakistan has denied allegations of harbouring terrorists and claims to have taken significant steps to comply with the FATF's action plan. However, the FATF has noted 'strategic deficiencies' that remain unresolved. The next FATF plenary meeting is scheduled for October, where a final decision could be taken.

The Indian government has stated that its efforts are based on evidence and international law, aiming to protect global financial security. No official comment was available from the Pakistani foreign ministry at the time of reporting.