FATF Grey List: India to Seek Pakistan’s Return in June 2025
Why in the news
In late May 2025, India said it would push for putting Pakistan back on the FATF grey list over weak action on terror financing.
Key facts
- FATF: global watchdog on money laundering and terror financing.
- Pakistan: grey-listed 2018; removed October 2022 on condition of a strong legal framework, including an anti-terror law.
- India’s plan: dossier before the June 2025 plenary, plus talks with the World Bank to stop further funding.
Grey list versus blacklist
| Aspect | Grey list | Blacklist |
|---|---|---|
| Meaning | Increased monitoring for strategic deficiencies; jurisdictions of concern | Countries backing terror financing or laundering and not cooperating |
| Also called | Not stated | NCCTs |
| Effects | More scrutiny, less investment, reform pressure | No IMF, World Bank, ADB or EU aid; sanctions; lost investor confidence |
Exam angle
- Greylisting is a warning; poor action can lead to the blacklist.
- Blacklisted in 2025: North Korea, Iran, Myanmar.