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TRF Sanctioned: Will Pakistan’s Terror Nexus Drag It Back to FATF Grey List?

Being greylisted means a nation faces difficulty in obtaining credit from institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank.

Harishanker R P by Harishanker R P
18 July 2025
in Geopolitics
TRF Ban a Win for India: Renewed Momentum to Greylist Pakistan at FATF

Global Ban on TRF Revives India’s FATF Campaign Against Pakistan

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In a significant diplomatic win for India, the United States has officially designated The Resistance Front (TRF) as a global terrorist organisation. This designation not only exposes the deep-rooted terror ecosystem operating from Pakistan but also serves as a powerful lever in India’s campaign to put Pakistan back on the Financial Action Task Force (FATF) grey list. TRF, a Lashkar-e-Taiba (LeT) front behind the deadly Pulwama attack, has long operated under the patronage of Pakistan’s military-intelligence complex.

The move strengthens India’s international case that Pakistan continues to harbor, fund, and export terrorism under various fronts while receiving billions in aid from global financial institutions. This declaration severely undercuts Islamabad’s narrative of being a “victim of terrorism” and could revive financial restrictions that Pakistan desperately sought to escape in 2022.

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TRF’s Terror Designation: A Turning Point in India‘s Anti-Terror Diplomacy

The United States’ move to label TRF a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act and a Specially Designated Global Terrorist (SDGT) entity under Executive Order 13224 has massive implications. These lists are not symbolic. FTO designation criminalizes support for the group within the U.S., freezes any assets under American jurisdiction, and isolates the group financially and diplomatically. The SDGT tag similarly authorizes broad U.S. powers to disrupt financial operations tied to global terror networks.

By targeting TRF, a proxy of Lashkar-e-Taiba—a group historically supported by Pakistan’s ISI—the U.S. is acknowledging the continuity of Pakistan’s role in cross-border terrorism. It validates India’s long-standing claim that Pakistan’s promises of dismantling terror infrastructure are hollow. For New Delhi, this is more than symbolic; it offers a direct line of pressure to reintroduce Pakistan into the FATF’s enhanced monitoring regime.

Understanding FATF and the Power of the Grey List

The Financial Action Task Force (FATF), an inter-governmental watchdog formed in 1989, was established to combat money laundering, terrorist financing, and threats to the integrity of the global financial system. It maintains two major lists: the Grey List and the Black List. Countries on the Grey List are placed under “increased monitoring” due to their failure to curb money laundering and terror financing. This designation restricts access to global financial markets and makes foreign investors and banks wary. Pakistan was on this list between 2018 and 2022.

Being greylisted means a nation faces difficulty in obtaining credit from institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank. The FATF’s Black List is even more severe, essentially branding a country as a haven for terror financing and prompting global sanctions. India has repeatedly argued that despite getting delisted in 2022, Pakistan has not reformed. The reemergence of groups like TRF, backed by LeT, is proof that Islamabad merely rebrands old outfits to fool international watchdogs.

Why TRF’s Tag Could Tip the Balance

TRF’s terror tag couldn’t have come at a better time. India has been intensifying its lobbying ahead of the upcoming FATF plenary session in September-October. According to sources, New Delhi has submitted fresh dossiers and letters to FATF members, detailing how Pakistan diverts aid for terror operations. India has also reached out to nations like Canada, Denmark, Mexico, and Argentina, seeking support to re-list Pakistan.

Importantly, FATF issued a rare interim condemnation of recent terror attacks, signaling growing intolerance within the global community toward state-sponsored terrorism. The attack on tourists in April 2025, which India attributes to TRF, may have been a trigger for this rare statement. The U.S. decision now gives India a concrete foundation to argue that Pakistan’s terror networks are not only active but emboldened.

FTO and SDGT: The Terror Lists That Isolate Extremists

The Foreign Terrorist Organizations (FTO) list is curated by the U.S. State Department and includes groups that pose a threat to U.S. nationals or security interests. The SDGT list, on the other hand, is maintained by the U.S. Department of Treasury under Executive Order 13224. These designations allow the freezing of assets, banning of transactions, and prosecution of those who assist or collaborate with such entities.

For India, having TRF on both these lists is a game-changer. It restricts the group’s international movement, cuts off financial channels, and builds pressure on states like Pakistan that shelter them. Moreover, it compels other FATF member countries to consider India’s evidence seriously, especially as this designation from the U.S. acknowledges the role of TRF in one of the deadliest attacks on Indian soil.

A Global Message to Terror States Like Pakistan

The global recognition of TRF as a terrorist organisation is not just a win for India it is a blow to Pakistan’s credibility. It shows that the world is no longer buying Islamabad’s dual game of playing victim while nurturing killers. As India pushes for Pakistan’s re-entry into the FATF grey list, the U.S. designation adds powerful weight to New Delhi’s argument. If the international community is serious about stamping out terrorism, it must call out and penalize states that bankroll and shield terror. For India, this is not just diplomacy it’s justice for every life lost to Pakistan-sponsored terror.

Tags: FATF GreylistForeign Terrorist OrganisationPakistanThe Resistance Front
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