Pakistan has been under the FATF’s scanner since last June, when it was put on the greylist for terror financing and money laundering risks, after an assessment of its financial system and law enforcement mechanisms.
Pakistan was placed on FATF’s grey list for terror financing in June 2018, on a proposal moved by the US, UK, Germany and France. FATF is the global watchdog on anti-money laundering and combating financing terror.
In June last year, the Paris-based FATF had placed Pakistan on the 'grey list' of countries whose domestic laws are considered weak to tackle the challenges of money laundering and terrorism financing.
"India's animosity towards Pakistan was well known and the recent violation of Pakistan's airspace and dropping of bombs inside Pakistani territory was another manifestation of India's hostile attitude," Pakistan Finance Minister Asad Umar wrote in a letter to FATF.
Last year, the Paris-based FATF, an international terror financing watchdog, finalised a report with 40 recommendations for de-listing Islamabad from its 'grey list'. Pakistan was placed on the list for failing to curb anti-terror financing.