India to apprise FATF of latest evidence on terror infrastructure in Pakistan

Context

• The Indian authorities are planning to apprise the Financial Action Task Force (FATF) of the latest evidence related to the terror bases in Pakistan that were destroyed by the defence forces during the precision attacks as part of Operation Sindoor, in the aftermath of the Pahalgam terror attack.

• The FATF Plenary had removed Pakistan from the Grey List in October 2022

• The last time the FATF had placed Pakistan on its Grey List was in June 2018.

• However, owing to its failure to implement all the action points fully, Pakistan was again retained on the Grey List on October 21, 2021.

• Pakistan was put on the Grey List for the first time in 2008, then removed in 2009, and again it was brought under increased monitoring from 2012 to 2015.

• Greylisting by the FATF is said to limit a country’s access to international loans.

Financial Action Task Force (FATF)

• The FATF is an inter-governmental body that sets international standards seeking to prevent international financial crimes that aid terrorism.

• The FATF was established in July 1989 by a G-7 Summit in Paris, initially to examine and develop measures to combat money laundering.

• After the 9/11 attacks, the FATF in October 2001 expanded its mandate to incorporate efforts to combat terrorist financing.

• The FATF currently comprises 37 members and two regional organizations (European Commission and Gulf Cooperation Council), representing most major financial centers in all parts of the globe.

• India has been a member of the FATF since 2010.

• Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris

Black list of FATF

• As of May 2025, the FATF's blacklist includesIran, North Korea, and Myanmar

• The term "black list" in the context of the Financial Action Task Force (FATF) refers toHigh-Risk Jurisdictions subject to a Call for Action

• These countries are identified as having significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing

• The FATF calls on all members to apply enhanced due diligence and, in the most serious cases, countermeasures to protect the international financial system from the risks emanating from