Strasbourg, June 14, 2025: India faced a diplomatic setback in its efforts to have Pakistan re-listed on the Financial Action Task Force (FATF) grey list, as multiple member states strongly opposed the move during recent deliberations, sources confirmed on Saturday.
According to diplomatic sources, the Indian delegation made a “concerted push” to place Pakistan back on the FATF grey list, citing concerns over financial regulations and counter-terror financing mechanisms.
However, India’s move was firmly blocked by China, which led the opposition and praised Pakistan’s continued progress on fulfilling FATF action plans. Turkey and Japan also threw their support behind Pakistan, significantly weakening India’s attempt.
This development comes on the heels of heightened tensions between the two nuclear-armed neighbors, following the killing of 26 tourists in Pahalgam, located in Indian Illegally Occupied Jammu and Kashmir. India hastily blamed Pakistan for the incident, which Islamabad categorically denied.
Pakistan not only rejected the allegations but also offered an independent and transparent investigation into the matter, while highlighting India’s history of using proxy groups to carry out destabilizing activities inside Pakistani territory.
Following a series of Indian airspace violations, Pakistan launched a large-scale retaliatory operation dubbed “Operation Bunyan-um-Marsoos”, targeting several Indian military installations across different regions. In the ensuing conflict, Pakistan reportedly shot down six Indian Air Force jets — including three Rafale aircraft — and dozens of drones. The conflict, which lasted over 87 hours, concluded on May 10 following a US-brokered ceasefire announced by President Donald Trump.
Pakistan was officially removed from the FATF grey list in October 2022 after completing a comprehensive set of reforms in line with FATF guidelines. Since then, the country has made significant strides in improving its financial regulatory framework and strengthening counter-terror financing mechanisms.
Islamabad has also played a proactive role on the global stage, serving as a major contributor to UN peacekeeping missions and being elected to the United Nations Security Council in June 2024, replacing Japan in the Asian seat.
Pakistan has repeatedly highlighted its status as one of the world’s worst victims of terrorism, having lost more than 80,000 lives over the past two decades. The country has also persistently raised the issue of Indian sponsorship of terror groups such as Tehreek-e-Taliban Pakistan (TTP) and Baloch Liberation Army (BLA), which have conducted attacks within Pakistan’s borders.
Despite rising regional tensions, Pakistan’s position at FATF remains secure for now, as key global players continue to acknowledge its progress and oppose politically motivated attempts to undermine it on international forums.
