India has reportedly launched a renewed diplomatic campaign aimed at putting Pakistan back on the Financial Action Task Force (FATF) grey list over its continued failure to curb terror financing and support for extremist groups. The move comes amid fresh allegations of Pakistan’s involvement in cross-border terrorism and illicit financial networks.
According to government sources, India has intensified behind-the-scenes diplomatic efforts in key countries including the United States, South Korea, and Bahrain, urging them to support its initiative against Pakistan in the upcoming FATF plenary sessions. These efforts are said to be part of "Operation Sindoor," India’s broader strategy to counter terrorism and expose nations harboring or funding extremist networks.
New Delhi has reportedly provided intelligence dossiers to several FATF member states, detailing the re-emergence of terror entities and money laundering operations allegedly supported by elements within Pakistan. These dossiers are backed by evidence of financial flows to groups banned by the UN, including Jaish-e-Mohammed and Lashkar-e-Taiba.
A senior Indian official stated, “Pakistan has not taken credible action against terror infrastructure on its soil. Despite FATF’s earlier monitoring, recent assessments suggest a rollback of compliance measures and a resurgence of activities linked to terrorist financing.”
India’s move comes at a time when FATF, the Paris-based global watchdog against money laundering and terror financing, is set to review compliance of its member nations. Pakistan was removed from the grey list in 2022 after it pledged to take action against terror funding — but Indian officials argue that these steps were "cosmetic and reversible."
The Ministry of External Affairs has so far not issued an official statement, but sources indicate that India will be engaging with regional allies and multilateral institutions over the coming weeks.
The FATF grey list designation increases a country’s financial scrutiny and restricts its access to international markets — a move that could significantly impact Pakistan’s struggling economy.
Observers note that if India succeeds, it could mark a major diplomatic win for New Delhi and further isolate Islamabad on the international stage.
