India Presses FATF to Re-Greylist Pakistan

India is stepping up its diplomatic efforts to have Pakistan returned to the FATF 'grey list', citing ongoing failures to address money laundering and terror financing, particularly following a recent terror attack in Pahalgam. Indian officials have compiled dossiers alleging that Pakistan has diverted financial aid from sources such as the IMF and World Bank to support armed groups and terror activities. India is lobbying FATF member states and opposing new World Bank funding for Pakistan, aiming to increase international scrutiny and limit Islamabad's access to foreign capital. Despite Pakistan's removal from the grey list in 2022 and IMF assurances that recent loans are strictly monitored for balance of payments support, India remains skeptical about the effectiveness of these safeguards. Placement back on the grey list would likely worsen Pakistan's economic difficulties. The FATF plenary in June will be a key moment for India's campaign.