Abstract
Almost, every nation of the world is affected by terrorism. There are terrorist organizations who are involved in terrorist activities all over the world. The world is concerned about every aspect which contributes in spreading of this menace. One of the main contributors to the spread of terrorism is money laundering which itself is an illegal act that is done for evasion of taxes and transformation of illegal earned wealth into legitimate one in general but is also used for carrying out terrorist activities in order to conceal the origin of the fund generated for the terrorist activity. Terrorist financing is carried out in different ways. The money is funnelled through the illegal methods of money laundering, for carrying out terrorist activities. There is a body called the Financial Action Task Force (FATF), which has been devised to counter money laundering and terror financing. This paper attempts to understand what money laundering and terror financing are? The link between the two, money laundering and terrorist financing is attempted to be explored and what is the role of FATF in this respect? This paper gains insight in the case of Pakistan so as to understand that where Pakistan stands in this scenario. Therefore, this paper discusses the repercussions and implications of blacklisting for Pakistan. The study also includes a brief introduction to the body of FATF and critique of the forum of FATF, as every international forum is being politicized by some states in pursuit of their interests.