The appointment of India’s Vivek Aggarwal as Vice-President of the Financial Action Task Force (FATF) has renewed discussions about Pakistan’s position within the global financial watchdog. Experts, however, say the appointment should not be viewed as giving India the authority to influence FATF decisions on its own.
Aggarwal will serve as FATF Vice-President from July 2026 to June 2027 under the organisation’s incoming UK presidency. While the position allows him to participate in leadership discussions and policy coordination, FATF decisions are made collectively by member countries through consensus rather than by any single official.
Analysts say India could use diplomatic engagement and technical submissions to raise concerns related to Pakistan’s financial system. These could include allegations linked to terror financing, charitable organisations, informal money transfer networks, beneficial ownership, virtual assets, digital wallets, and cross-border financial transactions.
Experts believe Pakistan’s response should focus on strengthening institutions instead of engaging in political rhetoric. They point out that Pakistan completed the FATF action plans required for its removal from the grey list in October 2022 after introducing wide-ranging legal, regulatory, and enforcement reforms.
Those reforms included stronger anti-money laundering laws, improved counter-terror financing measures, enhanced financial monitoring, sanctions enforcement, better coordination among regulators, and more effective reporting of suspicious financial transactions.
Analysts say the international watchdog now places greater emphasis on the practical implementation of these measures. Countries are expected to demonstrate successful investigations, prosecutions, asset freezes, sanctions enforcement, and sustained coordination among institutions responsible for combating financial crimes.
Experts recommend that Pakistan continue documenting its progress and maintain close cooperation among the Financial Monitoring Unit, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, the Federal Board of Revenue, the Federal Investigation Agency, provincial authorities, and prosecutors.
They also stress the need for Pakistan to strengthen oversight of digital finance and virtual assets, as FATF has increased its focus on cryptocurrency, virtual asset service providers, blockchain transactions, and other emerging financial technologies.
According to analysts, Pakistan should continue engaging constructively with FATF member states through technical and diplomatic channels while ensuring its financial system remains transparent, credible, and compliant with international standards.
Experts say the country’s long-term success will depend on strong institutions, effective implementation of financial regulations, and continued reforms that reinforce confidence in Pakistan’s financial system.
