FATF report flags misuse of digital platforms in terror attacks

Hindustan Times

5 hours ago

NEW DELHI: The Financial Action Task Force (FATF) on Tuesday warned about the use of e-commerce platforms and virtual private networks (VPNs) by terrorists to procure explosives or arrange funds, citing the example of the February 2019 Pulwama suicide bombing and April 2022 Gorakhnath temple terror attack. A flag with the logo of the Financial Action Task Force, FATF, waves in the wind next to the German national falg during a meeting of the task force at the Congress Center in Berlin, Germany.(AP)
In its latest report titled 'Comprehensive update on terrorist financing risks', the multilateral financial watchdog said it has received inputs from delegations and publicly available sources regarding state sponsorship of terrorism, including by groups designated by the United Nations.
The FATF didn't specifically name any country. However, India has repeatedly asserted at international forums that Pakistan openly supports UN-listed terror groups such as Lashkar-e-Taiba (LeT) and Jaish-e-Mohammad (JeM).
Citing the 2019 Pulwama suicide attack that killed 40 Indian troopers as a case study for misuse of e-commerce platforms for terror financing, the report said: 'Investigations revealed the cross-border management 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 the EPOM [e-commerce platform and online marketplace] Amazon. This material was used to enhance the impact of the blast.'
To be sure, the National Investigation Agency (NIA) had said in its Pulwama attack charge sheet that one of the accused, Waiz-ul-Islam, a resident of Srinagar, had helped the main planner Umar Farooq in procuring explosives from Amazon.
Forty Central Reserve Police Force (CRPF) personnel were killed in the terror attack on February 14, 2019, triggering the Indian Air Force (IAF)'s air strike on a JeM terror camp deep inside Pakistan 12 days later. This resulted in a dogfight between combat jets of the two nations on February 27.
'The possibility that States may choose to provide financial or other forms of support to organisations that engage in terrorist acts is a longstanding terror financing threat to international peace and security, as well as to the stability of regional financial and political systems,' the report said.
'Moreover, it undermines the effectiveness of FATF activities that are intended to support governments in adopting best practices to detect, deter and otherwise disrupt terror financing,' it said, adding that support by states was provided in the form of direct financial support, logistical and material support, of the provision of training.
On the use of online payment service and VPNs by terrorists, the FATF report referred to the April 3, 2022 attack on security personnel at Gorakhnath temple by an Islamic State-inspired terrorist, Murtaza Abbasi.
'The financial investigation revealed that individual A transferred INR 669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third party transactions and using VPN services to obscure the IP address,' the report said.
'The forensic report revealed that the accused had been using a VPN for calling, chatting, and downloading to evade detection. Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services,' the report said.
'A comprehensive analysis of the accused's PayPal transactions, obtained via email, indicated that approximately forty-four international third-party transactions totaling ₹669,841 (approximately USD 7,736) had been made to foreign accounts. Additionally, the accused received funds from a foreign account through PayPal. The investigation also uncovered that the accused had sent money to multiple individuals identified as ISIL followers in the foreign jurisdictions to support terror activities,' it said.
The global watchdog had last month condemned the April 22 Pahalgam attack, saying it could not have occurred without money and means to move funds between terrorist supporters, which Indian officials described as an important first direct statement by the FATF.
'Terrorist attacks kill, maim and inspire fear around the world. The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,' the statement by FATF said.