
How Are Pak Terrorists Moving Money? Hints From An FATF Report
FATF Has To Do Its Job
For those not in the know, the FATF is an intergovernmental body formed in 1987 by the G-7 countries, the European Commission and eight others (who are curiously not listed), to combat money-laundering, including "terrorist financing and the financing of proliferation of weapons of mass destruction".
This has nothing to do with morality, but with the fact that terrorist financing can include all manner of crimes, including human and narcotics trafficking, among other things; it can essentially infect the international banking system to the detriment of each state.
The FATF does periodic reviews of each country. India joined in 2010, and in 2024, it got an 'outstanding' report for its financial stability and probity. The body, however, warned it against the use of 'non-profit' associations for terrorist financing. A number of NGOs were shut down, causing a hue and cry of 'illiberalism'.
Pakistan, on the other hand, has been put on the 'grey list' several times, which means its financial systems have significant deficiencies. It was on the list in 2008, then in 2012, and then again in 2018 till 2022, during which period Islamabad sentenced Lashkar-e-Taiba (LeT) leader Zaki ur Rehman Lakhvi for five years Hafiz Saeed to 33 years in prison. The country also set in place the Anti-Terrorism Act (Amendment) Bill, 2020, which brought Pakistan's legal definition of terrorism up to international standards and aligned its laws with global norms on terrorist financing.
However, Pakistan's clean-up is far from done. It has just gone deeper underground.
Digital Routes
This is, however, not just about Pakistan and its backing of jihadist groups. Sure, in a move that would have Rawalpindi in panic, the report names and shames the LeT and the Jaish-e-Mohammad (JeM), as well as their so-called charitable arms. But it digs deep into the world of terrorist finance and warns that these actors have developed a 'persistent ability' to exploit the financial system of a majority of countries reviewed. The extent of the sophistication is apparent in the use of digital platforms like social media messaging apps and crowdfunding sites. Then there are shell companies, legal companies, and even trusts.
But here's the clincher. Terrorist financing is most effective when they control territory or are proximate to terrorist areas. That means taxes, diversion of humanitarian aid and access to natural resources.
The Thing About State Sponsorship
The key point in the document is that it flags, for the first time, state-sponsored terrorism, though it admits it has not yet developed a typology for this. It refers to reports of states helping designated terrorist groups to circumvent sanctions regimes, and interestingly notes, "When an organisation is not designated at the multilateral level, it is more likely to engage in financial activities, including fundraising".
That's one in the jaw for those analysts who wonder why we bother to get designations at the United Nations, a body largely seen as toothless. Sanctions are powerful instruments, if imposed strongly. True, Pakistan is not explicitly named, but the very recognition of this issue is vital for Indian investigators and diplomats. The report notes significantly that donations are coordinated through encrypted mobile communications, money services businesses, cash, or in virtual assets. In short, they "demonstrated remarkable adaptability" to beat the system. In addition, there is "an enhanced focus on technology and communications, with increased investment in secure communications devices, software, and cybersecurity measures". Now think about that in terms of Pahalgam, where the communications gear - the so-called 'ultra-sets' - operated only on radio waves. No wonder a trail was difficult to find.
Moving The Money
There's another frightening observation. Networked organisations such as the Islamic State and al Qaeda rely on regional entities for moving funds. That includes the AQIS (al Qaeda in the Indian subcontinent), which, just after India's Operation Sindoor, called upon all Muslims in India to launch a jihad. That's strange in itself, since the group was last heard of operating out of Assam in 2022 in conjunction with Bangladeshi groups. That's networking across three international borders.
Then there are the Islamic State's 'offices' such as the Maktab al Siddiq, which move funds through India and Bangladesh, among others, in hawala transactions. No, hawaladars are no longer handling greasy notes. Many, including in Afghanistan, are using cryptocurrency. The hawala trail itself has been replicated into a blockchain-based pseudo-anonymous transfer system, where a new user has to be vetted before they fit into the system, making it virtually impossible for an investigator to penetrate it. It's like a vast spider's web.
Techno Parks for Terror
Apart from all of the above, some unusual features have been identified. Terrorists now also bank on monetisation of social media platforms like Zoom or YouTube. There's also 'X', which provides services for its 'blue tick', and which, in turn, allows users to 'tip' other accounts using various payment methods. Research has found blue-ticked accounts tied to sanctioned entities and individuals.
Then there's YouTube's 'Super chat' feature, which allows viewers to purchase highlighted messages in live streams. Easy to support your favourite jihadi even while increasing their visibility. There are prepaid cards, pre-loaded, allowing easy transfer, and 'open loop' cards, which means money can be drawn across the world. It's enough to make an investigator cry into his coffee.
Following The Trail
However, investigators in Pakistan are particularly astute. One example cited in the FATF report is the evidence from a car bomb attack that was claimed by the Tehrik-e-Taliban Pakistan (TTP). The investigation involved tracing the owner of the car. which led to the authorities finding out that the person reactivated a dormant bank account, conducted some three transactions for large amounts, and then closed it entirely. Pakistan's Financial Monitoring Unit identified foreign remittances as well, and eventually arrested the lot. The point is, Pakistan can do a good job when it wants to.
But in the Pulwama attack of 2019, it didn't despite being given a chance. The report notes flatly how the investigations back then "revealed the cross-border movement of a large quantity of explosives into India". Notably, a key component of the improvised explosive device used in the attack - aluminium powder - was procured through Amazon. So, e-commerce sites are another area that could be misused. That's damning enough, though the FATF also notes how the authorities concluded' that the attack was by the JeM.
Today's Terrorism Is Complicated
Everything considered, this is a report that portrays the extent of the challenge security agencies face in preventing terrorism in the first place, and, in the second, grappling with the ensuing 'whodunnit'. It's virtually impossible to trace everything, and terrorist sponsors know it.
The immediate danger for New Delhi is the fact outlined clearly by the FATF: that the individual terrorist, inspired by a deluge of online propaganda, needs very little money to go ahead and hit its target. The Gokarnath temple attacker was arrested after some 44 international third-party transactions were found through forensic analysis of his phone. Today's terrorists have gone far beyond that.
Ultimately, the burden of finding proof has become an even bigger task, as also convincing some world leaders who often offer to 'mediate'. In the end, there is only one solution: the terrorist sponsor has to be shut down in its entirety. Forget the web, just smash the spider.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Hindu
16 minutes ago
- The Hindu
MHA refuses to share data on CAA beneficiaries
More than a year after the Citizenship (Amendment) Act, 2019 became effective, the Union Ministry of Home Affairs (MHA) has refused to share data on the total number of beneficiaries under the Act. A Bharatiya Janata Party MP from West Bengal told The Hindu that fewer than 100 people in his constituency had received citizenship under the CAA even though the number of intended beneficiaries, mostly belonging to the Matua sect, were around 1 lakh. There are around 2.8 crore people from the Matua and Namasudra communities who stand to benefit from the CAA in the State. The CAA Rules were notified on March 11, 2024 to give citizenship to undocumented members of Hindu, Sikh, Parsi, Jain, Buddhist and Christian communities from Pakistan, Afghanistan and Bangladesh under the Act that was passed in 2019. Ranaghat MP Jagannath Sarkar told The Hindu that the requirement to submit any one document, which will help trace an applicant's roots to Bangladesh, should be dropped and the cut-off date for applying under CAA should be amended too. The existing cut-off date is December 31, 2014. 'Most people do not have any of the documents sought by the MHA to fulfil citizenship criteria. These people came to India to escape persecution, with barely any belongings. How will they provide documents?' Mr. Sarkar said. Following reports from West Bengal, Schedule 1A of the CAA Rules was tweaked on July 8, 2024, and the list of nine documents to prove that the applicant is a national of Afghanistan or Bangladesh or Pakistan was expanded to include any document issued by the State or the Centre or quasi-judicial authority in India identifying or representing the applicant or their parents or grandparents or great-grandparents as a national of these three countries . Anticipating non-cooperation in Opposition-ruled States, the CAA Rules entrusted Central government officials posted in States, including officials of Directorate of Census, Postal Department, Railways, National Informatics Centre (NIC) and Intelligence Bureau, to process the applications. On April 2, Minister of State for Home Nityanand Rai said in the Rajya Sabha that 'thousands were granted citizenship', while responding to Trinamool Congress member Sushmita Dev's remarks that merely 350 people were granted citizenship under the CAA. The Minister did not specify the number. The Act was mostly expected to benefit people in West Bengal and Assam as those who had arrived from Pakistan had entered legally and possessed one of the documents required to acquire citizenship. In West Bengal, most intended beneficiaries already have voter cards and other identity documents. One of the criteria to avail citizenship under the CAA is that the applicant has to declare that he or she is a foreigner. The Pakistani applicants from the six non-Muslim communities would have been eligible under the Citizenship Act, 1955 also after living in India continuously for 12 years. According to Hindu Singh, president, Seemant Lok Sangathan, a group that advocates for the rights of Pakistani minority migrants in India, of the around 8,500 people who applied under the CAA in Rajasthan, 7,250 were granted citizenship in the past one year. On March 10, Assam's Parliamentary Affairs Minister Chandra Mohan Patowary informed the Assembly that two applicants in Assam were granted citizenship under CAA. In Gujarat, at least 373 people had got citizenship via the CAA. While discussing the legislation in Rajya Sabha on December 11, 2019, Union Home Minister Amit Shah said that 'lakhs and crores' of people would benefit from the law. However, Director, Intelligence Bureau had deposed before a parliamentary committee in 2018 that around 31,000 people would be the immediate beneficiaries. The MHA has refused to share information on how many people have either applied or had been granted citizenship. The Hindu filed a Right to Information Act (RTI) application in June 2024 and in September 2024, the MHA refused to provide the information. An appeal was also filed with the Central Information Commission (CIC), which hears appeals from applicants who have issues with RTI responses from public authorities of the Union government. The CIC's Chief Commissioner Heeralal Samariya heard The Hindu's case on July 9. The RTI was limited to applications received on the portal, which is run by the Home Ministry as the entire process is online. The Home Ministry's representative, Ram Dayal Meena, did not specifically dispute any of The Hindu's arguments during the hearing, and when asked by the CIC if he wanted to speak, declined to make any oral submissions. A written response reiterated the MHA's earlier refusals, which simply stated that the information was 'not being maintained as desired by you'. 'Upon perusal of records and examining the facts of the case at hand, it is noted that the Appellant's queries had been appropriately answered by the concerned PIO,' Mr. Samariya wrote in his order. 'The reply is self- explanatory and information as permissible under the provisions of the RTI Act has been duly supplied to the Appellant.' The decision was arrived at the same day, and was uploaded at a later date.


Time of India
an hour ago
- Time of India
Vijayendra or no Vijayendra, BJP unity may still prove elusive in Karnataka
Bengaluru: BJP's central leadership faces a catch-22 situation over whether to retain or replace Karnataka unit president BY Vijayendra, with dissent threatening to fracture the party and crimp its chances of a comeback in the 2028 assembly elections. Vijayendra's elevation was seen as a move to keep his father and Lingayat strongman BS Yediyurappa engaged. But a source said: "It has deepened the generational divide. Many seniors feel they are being sidelined, and they are not hiding their resentment anymore. Whether Yediyurappa still commands the same support of the Lingayat community is a million-dollar question." Discontent spiked after Vijayapura legislator Basanagouda Patil Yatnal was expelled for criticising the party brass, but an MLA from the anti-Yediyurappa camp said the fire of discontentment is still raging. "Several MLAs and former ministers feel the party is being run like a private company," the legislator said. "Vijayendra's stint so far has been insignificant. The party did not get desired results in the Lok Sabha polls under his watch. Members are also upset that decisions are being taken unilaterally." You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Former deputy CM KS Eshwarappa has also repeatedly criticised the state unit, insisting BJP is being "hijacked by a small group". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pirates Climb Aboard Cargo Ship - Watch What The Captain Did Next Tips and Tricks Undo "If things don't change, many will be forced to explore other options," he said. Both Eshwarappa and Yatnal have hinted at forming a separate outfit, and it may take shape if Vijayendra continues as state chief. Though such a move may have limited statewide impact, it could hurt BJP in key constituencies. BJP's high command has not taken a public stance, but party sources confirm that deliberations are on. Union minister V Somanna, former minister Murugesh Nirani, and BJP MP Ramesh Katti are being considered as possible replacements. "It's not just about who comes in. It's about how to handle Yediyurappa and his support base," said political analyst Vishwas Shetty. "It is said Yediyurappa has gone into isolation and is not talking to anyone as he awaits BJP leadership's decision." Congress, buoyed by its 2023 assembly victory, is watching closely. One member said: "They used to accuse Congress of dynasty politics. Now their entire state unit is run by one family. The party is in complete chaos, and people are watching." A senior Congress strategist added that the party is eyeing expansion in BJP strongholds in north Karnataka. "With Yediyurappa's influence waning and internal fights erupting, we see a golden opportunity to build a footprint," he said. Yet, some political thinkers see merit in backing Vijayendra. Prof Harish Ramaswamy said "unity in division and divided opinions and factions" have been a "hallmark" of BJP. "For a party which needs a generational shift in leadership, it cannot but inevitably afford Vijayendra," said Ramaswamy. "He is young, has a lineage, belongs to a forward community — one that has numbers. He is articulate. Knows politics by internship and practice . " Ramaswamy said Vijayendra would need to sharpen his skills while experience would make him wiser. "Parliamentary practice will help him," he said. "He should learn from his father the art of taking partymen along. Shifting leaders often can only breed more factions, thus causing election defeats for a party struggling to establish itself in southern India." Still, many within the party believe that the deeper issue goes beyond leadership. "Vijayendra or no Vijayendra, the unit is no longer united — and that's the real crisis." ———- Quote He (Vijayendra) should learn from his father the art of taking partymen along. Shifting leaders often can only breed more factions, thus causing election defeats for a party struggling to establish itself in southern India -Prof Harish Ramaswamy, political analyst


Time of India
4 hours ago
- Time of India
Police arrest five for liquor smuggling in Naugachia
Bhagalpur: In a crackdown against drug peddlers and bootleggers, Naugachia police arrested five people in separate incidents on Saturday. Police are looking for two people named in a liquor smuggling case. The police seized 400.12 litres of IMFL in packed bottles besides two vehicles used to transport the liquor. Out of the total seized IMFL, 300.12 litres of liquor were packed in bottles hidden in a pickup van in Mahwa Tola locality under Bhawanipur police station area. The driver of the van gave a slip to the police team. Bhawanipur police team registered a case under Section 30(A) of the Bihar Prohibition and Excise (Amendment) Act, 2022 against the vehicle owner and the driver of the van. In a separate raid conducted by Bihpur police team, 213 bottles of IMFL, containing a total of 100.5 litres of alcohol, were seized from a three-wheeler. The Bihapur police team, after registering a case at Bihpur PS (Naugachia), arrested one Suman Kumar, resident of Choti Napi village under Sanokhar police station area in Bhagalpur district. Suman is alleged to be part of an inter-district bootlegging racket. Whereas in four separate raids, police arrested Bandhu Singh, resident of Telghi village under Kharik PS area; Khedo Mandal, native of Kumuru Mandal Tola under Rangra PS area; Dablu Mandal, resident of Pakra village under Naugachia PS area and Sanjiv Kumar Singh, resident of Auliabad village under Jhandapur PS area, all in Naugachia police district and filed cases under various sections in respective police stations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo SP, Naugachia police district, Prerna Kumar, said raids and investigations are being conducted in Naugachia police district to arrest the anti-social elements and criminals involved in bootlegging. Information is also being gathered to know the entire racket of liquor smugglers, sources of origin of the IMFL and the people involved in it, the SP added.