Indian Foreign Secretary Vikram Misri engaged in strategic talks with US Deputy Secretary of the Treasury Michael Faulkender in Washington DC to enhance cooperation ahead of the upcoming Financial Action Task Force (FATF) reviews. The discussions focused on intensifying economic and financial collaboration, particularly with regard to coordination on FATF processes.
Misri's visit to the US capital from May 27 to 29 aimed at strengthening bilateral ties under the India-US COMPACT initiative, which targets advancing military partnership, commerce, and technology cooperation for the 21st century.
These developments occur as India prepares to advocate for reinstating Pakistan on FATF's grey list, citing accumulating evidence of Pakistan's support for extremist groups involved in terrorist attacks within India, including a recent assault in Pahalgam, Jammu and Kashmir.
India plans to emphasize concerns about Pakistan’s disproportionate defense spending amid economic challenges, suggesting misuse of funds obtained from international financial institutions such as the International Monetary Fund and World Bank. This financial diversion allegedly supports Pakistan’s military expansion rather than economic development.
Understanding FATF’s Grey List
The FATF grey list includes countries subject to increased monitoring due to strategic deficiencies in combating money laundering and terrorist financing. Placement on this list can adversely affect a country’s foreign investment inflows and access to aid.
Currently, 25 countries remain on this list globally. Pakistan was initially grey-listed in 2018 but was removed in 2022 after making certain commitments. However, India asserts that Pakistan has not addressed the underlying issues, instead continuing to provide support to terrorist organizations and redirecting international funds toward military purposes.
