The Financial Action Task Force on Friday said Pakistan has made “limited progress” in curbing financing of terrorism and has failed to show a proper understanding of risks posed by such groups, the Hindustan Times reported.

The Financial Action Task Force is an intergovernmental body that sets standards for fighting illicit finance globally. Pakistan was put on the “grey list” in February 2018 and was given a 27-point action plan that it had to implement to be taken off the list.

“Given the limited progress on action plan items due in January 2019, the FATF urges Pakistan to swiftly complete its action plan particularly those with timelines of May 2019,” the watchdog said, according to ANI. This means that Pakistan will continue to remain on the “grey list”.

“The FATF notes with grave concern and condemns the violent terrorist attack last week that killed 40 Indian security forces in Pulwama,” the watchdog said in a statement, according to NDTV. “Such attacks cannot occur without money and the means to move funds between terrorist supporters.”

The statement came after a plenary meeting of the Paris-based organisation concluded on Friday.

The FATF said Pakistan did not “demonstrate a proper understanding of the terror financing risks” posed by Al-Qaeda, Jamaat-ud-Dawa, Lashkar-e-Taiba, Jaish-e-Mohammed, which claimed responsibility for the Pulwama attack, and persons affiliated with the Taliban. “Pakistan should continue to work on implementing its action plan to address its strategic deficiencies,” it added.

According to The Hindu, the task force has given Pakistan time till October to comply with the action plan and review will be taken in June. If it fails to meet the targets, Pakistan could be blacklisted, making it harder for the country to access international loans.

An unidentified security official told PTI that Pakistan was nominated for a detailed review of its “serious deficiencies” in countering terror financing in February 2018. The United States, the United Kingdom, France, Germany and India supported the nomination.