India is expected to push for Pakistan's return to the Financial Action Task Force (FATF) 'grey list' during the FATF plenary meeting in June 2026, citing evidence of continued support to terror outfits, according to diplomatic sources. The FATF, an intergovernmental body that sets anti-money laundering and counter-terrorism financing standards, had removed Pakistan from its grey list in October 2022 after it completed a 34-point action plan.
New Delhi plans to present video and other evidence to the FATF, alleging that Pakistan has not taken sufficient action against UN-designated terror groups such as Lashkar-e-Taiba and Jaish-e-Mohammad. India has long accused Pakistan of using these groups as proxies in Kashmir and other regions. Pakistan denies these allegations, stating it has taken strong action against all terror groups.
The FATF grey list indicates a country is under increased monitoring but does not impose sanctions. However, it can affect a country's economy by increasing borrowing costs and reducing foreign investment. Pakistan was on the grey list from 2018 to 2022, and its return could have significant economic implications.
As of June 2026, Pakistan is not on the FATF grey list, but the FATF has noted some deficiencies in its anti-money laundering regime. The plenary meeting will decide on any changes to the list based on member countries' assessments.
