New Delhi: In a major setback, Pakistan will continue to remain in the Financial Action Task Force (FATF) grey list. The decision to retain Pakistan in the grey list was taken during the review meeting of the Financial Action Task Force (FATF) which was held in Paris on Tuesday. Also Read - JeM Chief Masood Azhar 'Missing', Claims Pakistan Ahead of FATF Plenary

Islamabad could not get any respite despite the support of Turkey and Malaysia. The week-long plenary session of FATF, which started on February 16, took the decision after reviewing the steps taken by Pakistan to control terrorism on its soil. Also Read - FATF to Take up Pakistan's Terror-funding Issue in Paris Session, Decide Its Fate on 'Grey List'

The development comes after Pakistan submitted its compliance report for review to the Financial Action Task Force (FATF) with hopes that it would see Islamabad out of the terror watchdog’s grey list.

In the report, Pakistan has informed that JeM founder Masood Azhar and his family are missing. It also claimed that there were only 16 UN-designated terrorists in Pakistan, of which seven are dead. Pakistan also said in the report that out of the nine who are alive, seven had applied to the UN for exemption from financial and travel restrictions.

After reviewing the report, the FATF demanded Pakistan to tighten its laws and hold organisations and individuals behind money laundering and terror financing accountable.

In 2018 and 2019, the FATF had placed Pakistan on the grey list and had already granted Islamabad an extension till February 2020 during a meeting in October last year to take reformatory steps.

The FATF in Beijing last year had analysed Pakistan’s situation from a technical point of view. The FAFT warned that Islamabad would be put on the blacklist if it did not comply with the remaining 22 out of 27 points related to anti-money laundering and counter-terrorist financing.

The FATF said it will be issuing a decision on whether Pakistan has taken sufficient steps to avoid being blacklisted. As per updates, if Pakistan gets blacklisted, then it would face isolation from the international banking system, introducing stricter checks and safeguards on transactions involving the country.

Ahead of the review meeting, the FATF on Monday had said several terrorist groups continue to benefit from funds raised through illegal activities and from supporters worldwide despite the international terror financing watchdog tightening the standards on the flow of money.

India in the meeting has maintained that Pakistan has been extending regular support to terror groups like Lashkar-e-Taiba (LeT), Jaish-e-Mohammad (JeM) and Hizbul Mujahideen, whose prime target is India, and has urged FATF to take action against Islamabad.