The Financial Action Task Force (FATF) has issued a stern warning to Pakistan, emphasizing that its October 2022 exit from the grey list does not protect the country from ongoing terror financing risks. Speaking at the FATF’s plenary session in Paris, FATF President Elisa de Anda Madrazo highlighted that countries previously on the grey list, including Pakistan, are not immune to money laundering or terrorist financing and must maintain continuous vigilance and stringent financial oversight. This warning comes amid reports that Pakistan-based terror group Jaish-e-Mohammad (JeM) has been exploiting digital wallets and cryptocurrency channels to fund terror camps, masking illicit financial flows. India’s National Risk Assessment 2022 identifies Pakistan as a significant terror financing threat, implicating state-linked entities such as the National Development Complex in proliferation financing. While Pakistan complies with certain FATF benchmarks, it remains under follow-up monitoring by the Asia Pacific Group (APG) for enforcement of anti-terror financing measures. The FATF reiterated that compliance is an ongoing duty, not a one-time achievement, reinforcing India’s concerns over Pakistan’s persistent systemic vulnerabilities and misuse of digital platforms for terror financing, highlighting the critical nature of sustained global efforts to tighten financial governance against such threats. The warning was given in October 2025 at the FATF plenary meeting in Paris.