Money laundering lies in the country and makes it dangerous for the economy and growth. It is an attempt to illegally hide the sources of today's fast-paced economy which is difficult to chart. As a result, the small states with an underdeveloped financial structure find it challenging to manage financial resources. It is a "little white lie" of international crime. An argument made by R.T. Naylor that "money laundering is an artificial and contrived offense that has no place in the statute books of a civilized country." Money Laundering can also disrupt public confidence in the banking system. It also leads to expansion in criminal activities. Where should the international clique look for replica and cooperation in the case of transnational organized crimes? An increase in money laundering, terror financing has led to the formation of the Financial Action Task Force (FATF), an intergovernmental organization formed in 1989 at the G7 summit, Paris. It contains a set of standards to promote effective legal implementation combat money laundering by terror organizations. It is a policy-making body that makes progress through peer review, i.e., a mutual evaluation by member countries. This paper aims to place the interaction between Pakistan and the Financial Action Task Force while also presenting the features and functions of FATF. Similarly, this paper addresses the consequences of being on a grey list and its effect on a nation. Finally, the paper discusses how COVID-19, a global pandemic, poses a threat to the FATF.