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The Hindu
09-07-2025
- Business
- The Hindu
India plays key role in bringing out FATF's latest report on terrorist financing risks
India was one of the key contributors to the Financial Action Task Force (FATF) project for putting together the 'Comprehensive Update on Terrorist Financing Risks' report that was released on Tuesday (July 9, 2025). It is learnt that the United Nations Security Council Counter-Terrorism Committee Executive Directorate and France were the co-leads for the project. India also played a significant role in bringing out the report, which has, for the first time,e recognised state sponsorship as a means to fund and support terrorism. 'We have long identified Pakistan as a state that sponsors terrorism. India's 2022 National Risk Assessment (NRA) on Money Laundering and Terror Financing flagged state-sponsored terrorism — particularly from Pakistan — as a major concern. Accordingly, all financial institutions, including banks, are required to do enhanced due diligence with respect to any transaction related to Pakistan,' said a government official. The findings highlighted in the FATF report are expected to reflect in the framing of subsequent NRAs of all the other countries. The United States, in its 2024 National Terrorist Financing Risk Assessment, has already noted that it faced terrorism threats from terror groups in Pakistan, apart from Afghanistan, Southeast Asia, and East Africa. 'Being an NRA, it is followed by all U.S. banks while adhering to their KYC guidelines. They are cautious about transactions with Pakistan, and this increases the cost of doing business for the Pakistani establishment and businesses. After this FATF Risk report — which carries higher precedence over NRAs — the U.S. and other countries will have to acknowledge the sources of state-sponsored terrorism in their risk assessments,' the official said. In the FATF report, the global money laundering and terror financing watchdog has considered the inputs received from delegations and publicly available sources of information. They indicated that certain terror outfits had been and continued to receive financial and other forms of support from several national governments. 'While the FATF has not developed a typology specific to state-sponsored terrorism, it has explicitly noted that the funding of terrorism, or the resourcing of a terrorist entity, by any state, is incompatible with adherence to the FATF Standards and mandate, as well as the International Convention for the Suppression of the Financing of Terrorism, and paragraphs 1(a) and 2(a) of UNSC Resolution 1373 (2001),' it said. The report recognised that the possibility of state-sponsored terrorism was a 'long-standing terror financing threat to international peace and security, as well as to the stability of regional financial and political systems.' '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 added. 'Among the various suspect modus operandi adopted for state sponsoring of terror outfits is the ongoing smuggling of oil from Iran to Pakistan. There is a high risk of funds so generated being used to finance terrorist activities,' said another official. According to the report, sham non-profit organisations are also being used by Pakistan-based terror outfits such as Jaish-e-Mohammed and Lashkar-e-Taiba, both associated with the Al Qaeda, to raise, store, and move funds on the false pretext of charitable work. The outfits were reported to have abused humanitarian assistance programmes using such entities to finance their operational activities.
Time of India
21-06-2025
- Business
- Time of India
Pakistan caught red-handed again: FATF's new report exposes the dirty tricks of Islamabad
Mis-declaration and dual-use materials raise proliferation concerns April terror attack in Pahalgam linked to financial networks Live Events India calls out state-sponsored terrorism in risk assessments FATF case echoes past proliferation network run by AQ Khan (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel In a striking revelation, the Financial Action Task Force (FATF) has cited a 2020 case where Indian authorities intercepted a shipment of missile-related equipment headed for Karachi, exposing Pakistan's use of mis-declared dual-use goods linked to its ballistic missile programme. The global watchdog's latest report highlights how the consignment, traced to Islamabad's National Development Complex, was disguised in shipping documents — a move seen as part of Pakistan's ongoing efforts to bypass international controls and fuel to the FATF report, Indian investigators stopped a cargo ship carrying autoclaves — specialised equipment used for high-energy materials and missile motor components. The shipment had been falsely declared in its documentation. The Bill of Lading, submitted with the consignment, showed a direct connection between the importing party and Pakistan's National Development Complex, a facility known for developing long-range ballistic missiles. This detail was first reported by The Times of India (TOI).FATF noted that such dual-use goods can support missile and weapons development programmes when exported without proper declarations. The watchdog cited the Pakistan-linked case as a key example of how weak export controls and mis-declarations can lead to violations of international case also reinforces FATF's growing concerns around the global trade in proliferation-sensitive goods. The watchdog said this incident illustrates how state-linked entities may attempt to bypass regulations by disguising the nature and end use of sensitive its broader statement, FATF also referred to a terror attack in Pahalgam, Kashmir, on April 22, which resulted in the deaths of 26 people. 'The April 22 attack in Pahalgam, Kashmir, which claimed 26 lives, would not have been possible without financial support,' the FATF said in its report. It added that a detailed document covering terror financing cases — including those linked to state-sponsored actors — will be released told PTI that the FATF's decision to publicly mention the Kashmir incident marked a rare but clear signal from the international body. Indian officials interpreted the move as growing recognition of the financial networks behind cross-border terror attacks. According to Indian sources, the Pahalgam attack was carried out by militants who were trained in National Risk Assessment has identified terrorism financing from state actors — with Pakistan prominently named — as a significant national security threat. The FATF currently monitors 24 countries on its 'grey list' for strategic gaps in anti-money laundering and counter-terrorism finance systems. Countries under grey-listing face increased scrutiny from international financial institutions and risk reduced investor this context, Indian authorities are preparing a formal dossier highlighting Pakistan's compliance failures. The document is expected to be presented during the Asia Pacific Group meeting on August 25 and the FATF plenary session on October 20. Officials have confirmed that India will push for Pakistan's re-inclusion in the grey list, citing new latest focus on proliferation threats also brings back attention to earlier instances of nuclear material trafficking tied to Pakistan. One of the most significant of these was the network operated by Abdul Qadeer Khan, widely known as the 'father of Pakistan's nuclear bomb.'As reported by TOI, Khan began acquiring uranium enrichment technology from Europe in the 1970s. He later used this knowledge to help build Pakistan's nuclear programme and exported the same expertise to Iran, North Korea and Libya through a global black-market network. 'He reportedly earned $100 million from Libya alone,' the report AQ Khan network was exposed in 2003 and was found to have operated through a complex web of intermediaries across more than 20 countries. The fallout from the operation led to years of global concern about nuclear proliferation risks, and raised serious questions about oversight and control within Pakistan's strategic institutions.(With inputs from TOI)
The Print
17-06-2025
- Business
- The Print
FATF says Pahalgam attack not possible without money support; report on terror funding soon
'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 FATF said in a statement. The Financial Action Task Force (FATF), in a rare move, condemned the terror attack and said it will increase its scrutiny on countries to see what steps they are taking to combat terror financing. New Delhi, Jun 16 (PTI) Global watchdog FATF on Monday said the Pahalgam terror attack, which killed 26 people, would not have been possible without money support, and it will soon release a report on terror financing cases, including state-sponsored terrorism. Sources said FATF rarely issues condemnation of terrorist acts. It is only the third time in last decade that they have issued condemnation of a terrorist attack. It had earlier issued condemnations once in 2015 and then in 2019 in severe cases of terrorist attacks. The FATF statement comes in the backdrop of Indian authorities highlighting Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement. According to sources, such action by Pakistan warrants that the country be put in the 'grey list' of the FATF. India has consistently held that Pakistan has given safe haven to designated terrorists and the same was evident when senior military officials were present at the funeral of the terrorists killed in Indian military attacks of May 7. Ahead of the next meeting of the Asia Pacific Group (APG) of FATF on August 25 and the next FATF plenary and working group meeting on October 20, India is preparing a dossier on the omissions and commissions by Pakistan with respect to FATF anti-money laundering and terror financing norms. India will be submitting to the FATF for grey listing of Pakistan. The rare condemnation by the Financial Action Task Force (FATF) shows that the 'international community has felt the severity of the attack', which killed 26 people in Pahalgam, Kashmir,on April 22, and spotlights that such attacks will not go unpunished, sources said, adding the terror attack was done by Pakistan-trained terrorists, sources said. The FATF, which is a global money laundering and terrorist financing watchdog and sets international standards that aim to prevent these illegal activities, also said that it will soon release a 'comprehensive analysis of terrorist financing', compiling cases provided by its global network consisting 200 jurisdictions. 'It will also host a webinar to help public and private sectors understand the risks and stay alert to emerging threats,' it added. Sources said the report on terror financing risks would be released in a month's time. This is the first time the concept of 'state sponsored terrorism' is being acknowledged by FATF as a funding source. 'Only India's National Risk Assessment (NRA) recognises state-sponsored terrorism from Pakistan as a key TF risk. The inclusion of 'state sponsored terrorism' as a concept in the report demonstrates international recognition of state-sponsored terrorism by Pakistan,' sources added. Pakistan's history with FATF's 'grey list' dates back to February 2008, when it was placed in the monitoring list. In June 2010 it was removed from the list, only to be brought back in February 2012, and then removed again in February 2015. It was brought back in the list again for the third time in June 2018, and was later removed in October 2022 with FATF asking Pakistan to continue to work with APG to further improve its anti-moneylaundering/combating the financing of terror (AML/CFT) system. Currently, there are 24 countries in FATF 'grey list'. These countries are under increased monitoring and they have to address strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. The FATF statement further said that as terrorism continues to threaten societies and citizens around the world, the global watchdog is supporting over 200 jurisdictions within its global network to build and enhance their counter-financing of terrorism (CFT) measures including through the strategic use of financial intelligence — making this one of the most powerful instruments for dismantling terrorist financing networks. 'In addition to setting out the framework for combating terrorist financing, the FATF has enhanced its focus on the effectiveness of measures countries have put in place. That is how, through our mutual evaluations, we have identified gaps that need to be addressed,' it added. The FATF has been working for 10 years to help countries stay ahead of terrorist financing risk — for example relating to abuse of social media, crowd funding, and virtual assets. FATF President Elisa de Anda Madrazo at the recent 'No Money for Terror Conference' in Munich, had said: 'No single company, authority, or country can combat this challenge alone. We must be unified against the scourge of global terrorism. Because terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.' PTI JD CS HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
17-06-2025
- Business
- The Print
FATF condemns Pahalgam attack; to soon release case reports on state-sponsored terror funding
'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 FATF said in a statement. The rare condemnation by the Financial Action Task Force (FATF) shows that the 'international community has felt the severity of the attack', which killed 26 people in Pahalgam, Kashmir,on April 22, and spotlights that such attacks will not go unpunished, sources said, adding the terror attack was done by Pakistan-trained terrorists. New Delhi, Jun 16 (PTI) Condemning the brutal Pahalgam terror attack in April, global watchdog FATF on Monday said it has enhanced its focus on the steps that the countries have taken to combat terror financing, and will soon release a report on terror financing cases, including state-sponsored terrorism. Sources said FATF rarely issues condemnation of terrorist acts. It is only the third time in last decade that they have issued condemnation of a terrorist attack. It had earlier issued condemnations once in 2015 and then in 2019 in severe cases of terrorist attacks. The FATF statement comes in the backdrop of Indian authorities highlighting Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement. According to sources, such action by Pakistan warrants that the country be put in the 'grey list' of the FATF. India has consistently held that Pakistan has given safe haven to designated terrorists and the same was evident when senior military officials were present at the funeral of the terrorists killed in Indian military attacks of May 7. Ahead of the next meeting of the Asia Pacific Group (APG) of FATF on August 25 and the next FATF plenary and working group meeting on October 20, India is preparing a dossier on the omissions and commissions by Pakistan with respect to FATF anti-money laundering and terror financing norms. India will be submitting to the FATF for grey listing of Pakistan. The FATF, which is a global money laundering and terrorist financing watchdog and sets international standards that aim to prevent these illegal activities, also said that it will soon release a 'comprehensive analysis of terrorist financing', compiling cases provided by its global network consisting 200 jurisdictions. 'It will also host a webinar to help public and private sectors understand the risks and stay alert to emerging threats,' it added. Sources said the report on terror financing risks would be released in a month's time. This is the first time the concept of 'state sponsored terrorism' is being acknowledged by FATF as a funding source. 'Only India's National Risk Assessment (NRA) recognises state-sponsored terrorism from Pakistan as a key TF risk. The inclusion of 'state sponsored terrorism' as a concept in the report demonstrates international recognition of state-sponsored terrorism by Pakistan,' sources added. Pakistan's history with FATF's 'grey list' dates back to February 2008, when it was placed in the monitoring list. In June 2010 it was removed from the list, only to be brought back in February 2012, and then removed again in February 2015. It was brought back in the list again for the third time in June 2018, and was later removed in October 2022 with FATF asking Pakistan to continue to work with APG to further improve its anti-moneylaundering/combating the financing of terror (AML/CFT) system. Currently, there are 24 countries in FATF 'grey list'. These countries are under increased monitoring and they have to address strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. The FATF statement further said that as terrorism continues to threaten societies and citizens around the world, the global watchdog is supporting over 200 jurisdictions within its global network to build and enhance their counter-financing of terrorism (CFT) measures including through the strategic use of financial intelligence — making this one of the most powerful instruments for dismantling terrorist financing networks. 'In addition to setting out the framework for combating terrorist financing, the FATF has enhanced its focus on the effectiveness of measures countries have put in place. That is how, through our mutual evaluations, we have identified gaps that need to be addressed,' it added. The FATF has been working for 10 years to help countries stay ahead of terrorist financing risk — for example relating to abuse of social media, crowd funding, and virtual assets. FATF President Elisa de Anda Madrazo at the recent 'No Money for Terror Conference' in Munich, had said: 'No single company, authority, or country can combat this challenge alone. We must be unified against the scourge of global terrorism. Because terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.' PTI JD CS HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Hindustan Times
16-06-2025
- Business
- Hindustan Times
FATF points to fund trail, slams Pahalgam attack
The Financial Action Task Force (FATF) has condemned the April 22 terror attack in Pahalgam 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 global terror financing and money laundering watchdog and a positive step in New Delhi's renewed attempts to put Pakistan back on the grey list. Countries in the grey list are subject to increased scrutiny, given an action plan, and their implementation of this is monitored every four months. If they fail to show any progress, then they are pushed to the 'black list' and subjected to counter measures. Countries currently on the FATF black list are Iran, Myanmar and North Korea. The global body further said that it has enhanced its focus on the effectiveness of measures countries have put in place, identified gaps in terror financing, and will soon release a comprehensive analysis on that. '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 titled 'Strengthening efforts to combat terrorist financing' said. A government official, who did not wish to be named, said, 'FATF rarely issues condemnation of terrorist acts. It is only the third time in the last decade that they have issued condemnation of a terrorist attack.' The watchdog had earlier issued condemnation in 2015 and 2019 of severe terrorist attacks. 'It has issued the condemnation because the international community has felt the severity of the attack and spotlights that such attacks will not go unpunished,' he added. FATF developed a TF [terror financing] Risk and Context toolkit for assessors, so that rogue states such as Pakistan cannot fool it with lies, he said. 'FATF is releasing a report on TF risks in a month's time. This is the first time the concept of 'state-sponsored terrorism' is being acknowledged by FATF as a funding source. Only India's National Risk Assessment (NRA) recognises state-sponsored terrorism from Pakistan as a key TF risk. The inclusion of 'state-sponsored terrorism' as a concept in the report demonstrates international recognition of state-sponsored terrorism by Pakistan,' he said. He quoted FATF president Elisa de Anda Madrazo's recent comments, 'No single company, authority, or country can combat this challenge alone. We must be unified against the scourge of global terrorism. Because terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.' People familiar with the statement said an Indian team comprising officials from the ministries of home and finance, the Enforcement Directorate (ED), and other agencies, which had travelled to Strasbourg, France, for the FATF plenary from June 10-13, highlighted Pakistan's support for terrorism, including the Pahalgam attack, in which 26 tourists were killed. 'Evidence has been provided to prove that Islamabad has failed to enforce anti-money laundering and counterterror reforms and made no headway in prosecuting UN-designated terrorists,' said an officer, who asked not to be named. Pakistan was removed from the FATF grey list in October 2022 but Indian officials have highlighted that its support to terrorism persists and that Islamabad provides safe haven to designated terrorists. It is due for an evaluation in 2026, and Indian officials are making efforts to convey to the international community that Islamabad needs to be put back in the increased monitoring category (grey list). Before Pahalgam, a similar statement was issued by FATF in 2019 after the Pulwama terror attack, in which 40 Central Reserve Police Force (CRPF) personnel were killed. Both the incidents forced India to respond by conducting air strikes deep inside Pakistan and brought both the countries on the brink of full-scale war. The Pahalgam attack was raised by India last month at a UN meeting in Vienna as well, saying Pakistan based UN-proscribed terrorist groups such as Lashkar-e-Taiba, Jaish-e-Mohammad and their proxies have orchestrated attacks on Indian soil, leading to tragic loss of innocent lives. 'Incidents such as the 2008 Mumbai attacks, the attacks in Uri and Pathankot in 2016, the 2019 Pulwama suicide bombing, and most recently, the heinous terror attack in Pahalgam where 26 tourists were shot dead, remain deeply etched in our national consciousness,' the Indian government said last month in a statement in Vienna. In response to the Pahalgam attack, India launched Operation Sindoor on May 7. Indian forces bombed nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK) in pre-dawn strikes — in which at least 100 terrorists were killed —and sparked a series of attacks and counter-attacks across the western border, involving fighter jets, missiles, armed drones, and fierce artillery and rocket duels. In one such attack on the night of May 9-10, the Indian Air Force struck targets at 13 Pakistani airbases and military installations. After four days of fighting, military hostilities were stopped on May 10 evening as the two nations reached an understanding. The National Investigation Agency (NIA) is currently investigating the terror attack and is looking for terrorists — estimated to be four in number—who shot 26 tourists at close range before fleeing. The federal agency has interrogated several individuals including pony operators, vendors, photographers and those employed in adventure sports activities apart from hundreds of overground workers to get clues in the case. Asserting that as terrorism continues to threaten societies and citizens around the world, FATF said in its statement on Monday that it supports over 200 jurisdictions within its global network to build and enhance their counter-financing of terrorism (CFT) measures, including through the strategic use of financial intelligence – making this 'one of the most powerful instruments for dismantling terrorist financing networks'. It further said that 'in addition to setting out the framework for combating terrorist financing, the FATF has enhanced its focus on the effectiveness of measures countries have put in place'. 'That is how, through our mutual evaluations, we have identified gaps that need to be addressed'. The global watchdog claimed that it has developed 'guidance on terrorist financing risk to support experts that contribute to evaluations of the 200+ jurisdictions in the global network'. FATF asserted that it is working to improve its support to countries to stay ahead of terrorist financing risks – for example, relating to abuse of social media, crowd funding, and virtual assets -- and release a comprehensive analysis of terrorist financing. 'To improve this picture, the FATF will soon release a comprehensive analysis of terrorist financing, compiling cases provided by our global network. It will also host a webinar to help public and private sectors understand the risks and stay alert to emerging threats,' FATF added.
