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.
Initial reports in Pakistani media said the National Counter-Terrorism Authority (NACTA) had informed the caretaker government that it did not have the capacity to prepare the “National Risk Assessment Report”, and suggested that the Federal Investigations Agency (FIA) do it instead.
India has been seeking global action against Pakistan for allowing terror safe havens in its territories, and has been pressing for punishing Pakistan-based terrorists involved in a series of attacks in India, including the 2008 Mumbai attack.
On Friday, the FATF placed Pakistan under monitoring in its International Cooperation Review Group until June 2018 for compliance of Anti-Money Laundering and Combating Finance of Terrorism regulations.
Over the next four months, Islamabad is expected to comply with certain conditions failing which they will find mention in FATF’s formal statement, as per officials who were present at the FATF plenary which ended on February 23.