Terrorists using e-commerce, crypto and social media to raise funds, FATF warns
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New Delhi: A new report by the Financial Action Task Force (FATF) on Tuesday flagged misuse of ecommerce platforms, social media and online payment services to fund terror activities. "Serious and evolving terrorist financing risks have been highlighted with a warning on gaps in countries including India and their abilities to fully understand terrorism financing trends and respond effectively," the latest report stated."Today's report outlines current and evolving methods employed by terrorist organisations and individuals to raise, move, store and use funds and assets, including cash transportation, hawala and other similar service providers, money value transfer services, online payment services, formal financial services, digital platforms (including social media such as Facebook, Telegram and crowdfunding features), virtual assets and the abuse of legal entities, such as shell companies, trusts and non-profit organisations (NPOs)," FATF said in a news release.Use of Chinese apps, crypto wallets, satellite phones and the Darknet has been flagged by India's National Investigation Agency and Narcotics Control Bureau in multiple investigations, including the Rameswaram Cafe blast (2024), Pulwama attack (2019), Laos cyber slavery case, Bihar-Nepal FICN seizures and the ISIS radicalisation probe (2020).Investigators suspect use of Chinese apps during the Pahalgam attack in April this year. After Operation Sindoor, several clear signs of Chinese and Turkey-made technology, radars and fighter jets had come to light.A marked increase in the mixed use of diverse methods of financing and the integration of digital technologies with conventional techniques were adding new layers of complexity to terrorism financing, the antiterror watchdog said.It noted: "The threat posed by lone individuals - often younger in age - is rising, with such actors relying on microfinancing strategies drawn from licit sources and petty crimes, as well as technology-enabled methods, including gaming and social media features."The report added, "Tracing financial trails related to increasingly frequent ethnically, racially or politically motivated terrorist attacks comes with its own set of challenges, including inconsistent designations and proscriptions, as well as low scale and visibility of financial activity in the preparation of attacks."The report, Comprehensive Update on Terrorist Financing Risks, reveals terrorists' persistent ability to exploit the international financial system to support their activities and carry out attacks. With terror financing methods varying depending on several factors and contexts, the report highlights terrorists' adaptability, underscoring the need for risk-based counter-terrorist financing measures.
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