Latest news with #TerroristFinancing
Times of Oman
10-07-2025
- Business
- Times of Oman
FATF report reinforces India's position on state sponsored terrorism
New Delhi: Global money laundering and terrorist financing watchdog FATF has for the first time introduced the concept of state sponsored terrorism in its latest report, highlighting that such funding is a longstanding threat to international peace and security, stability of regional financial, and political systems. State sponsored terrorism means a state actively financing terrorist activities as part of its state policy. Before this, India had raised and identified state sponsored terrorism from Pakistan as a source of Terrorist Financing risk in its ML/TF risk assessment 2022. The finding of the Financial Action Task Force's (FATF) July 2025 report reinforces India's long-standing position on state-sponsored terror financing. The FATF report also highlights the funding patterns of terrorist outfits LeT and JeM. It noted the use of e-commerce platform in the procurement of materials for a terrorist attack in India by terrorists. Referring to the Pulwama attack of February 2019, where a suicide bombing targeted a convoy of Indian security forces, resulting in the deaths of forty paramilitary soldiers. "India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM). Investigations 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-- aluminum powder--was procured through the EPOM Amazon," the FATF report read. "This material was used to enhance the impact of the blast," the report added. Among other revelations in the FATF report, it noted decentralisation as one of the most reported trends regarding worldwide terrorism activities in recent years. For example, FATF noted that Al Qaeda (AQ) has over the past years used a centralised consultation council, known as Majlis al-Shura, to manage key strategic decisions, including financial management. As the organisation has progressively shifted to a decentralised model, loose central elements are now relying on regional branches, such as Al-Qaida in the Islamic Maghreb (AQIM), Al-Qaida in the Arabic Peninsula (AQAP), Jama'a Nusrat ul-Islam wa al-Muslimin (JNIM), Al-Qaida in the Indian Subcontinent (AQIS), or Al Shabaab, which conduct operations and generate funds locally, FATF added. The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard. The last comprehensive update on terrorist financing (TF) risks was released in 2015. "Over the past decade, terrorists have demonstrated a persistent ability to exploit the international financial system to support their activities and carry out attacks. While the methods they employ can vary widely, the overall trend underscores their adaptability and determination. This continued abuse of the financial system poses a serious threat to global security and undermines international peace," read the executive summary of the report.
Time of India
08-07-2025
- Business
- Time of India
EPOMs, PayPal, and VPNs: Pulwama, Gorakhnath cases cited as FATF warns of online terror financing; says 'e-commerce and online payment platforms' misused
Danny generated AI Image NEW DELHI: Referring to the 2019 Pulwama attack , which resulted in 40 CRPF casualties, and the 2022 Gorakhnath Temple, the FATF on Tuesday said e-commerce and online payment platforms are being utilised for terrorist funding. The FATF's 'Comprehensive Update on Terrorist Financing Risks', a Global terror financing watchdog, highlighted state-sponsored terrorism, noting that various public sources and delegation inputs indicate ongoing financial and other support from several national governments to specific terrorist organisations. The FATF noted that delegations reported state sponsorship of terror financing as both a fundraising method and financial management strategy for certain terrorist organisations. Support manifested in various forms, including direct financial assistance, logistical aid, material resources, and training provisions, PTI reported. Following the April 2025 Pahalgam terror attack that claimed 26 lives, the FATF announced in June its intention to produce a detailed analysis of terrorist financing, incorporating cases from its global network of 200 jurisdictions. In an Indian case study, the FATF detailed how aluminum powder, a crucial component for an improvised explosive device, was acquired through EPOM Amazon to amplify the explosion's impact. "In February 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM)." The investigation led to charges against 19 individuals under the Unlawful Activities (Prevention) Act, including terror financing provisions. Seven foreign nationals, including the suicide bomber, were among those charged. Law enforcement recovered related assets, including vehicles and terrorist hideouts. Indian officials have consistently highlighted Pakistan's ongoing support for terrorism and its diversion of multilateral funds for weapons procurement. Sources indicate India believes Pakistan's actions warrant its placement on the FATF's "grey list". The report identified terrorists' misuse of e-commerce platforms and online marketplaces for operational procurement of equipment, weapons, chemicals, and 3D-printing materials. These platforms enable terrorists to generate funds by selling items, including previously low-demand products. The FATF explained that EPOMs facilitate fund transfers through trade-based money laundering schemes. This involves purchasing items and sending them to accomplices via EPOMs for resale in different jurisdictions, using profits for terrorist financing. The report outlined methods for raising, moving, and managing terrorist funds, noting that online payment services offer greater anonymity than wire transfers, making it difficult to identify transaction participants. The report cited the April 3, 2022, Gorakhnath Temple incident where an ISIL-influenced individual attacked security personnel. The suspect transferred Rs 669,841 via PayPal internationally using VPNs and received Rs 10,323.35 from abroad. Financial investigations revealed the accused's VPN service payments and approximately 44 international third-party PayPal transactions totalling Rs 669,841 to foreign accounts. The suspect also received foreign funds through PayPal. The probe uncovered payments to multiple ISIL followers abroad supporting terrorist activities. "Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused's account, thereby preventing further illicit fund transfers," stated the FATF, citing India's finance ministry. The report noted the significant growth in Fintech payment services over the past decade, with terrorists increasingly utilising these services for their low cost, speed, and ability to obscure participants through pseudonyms or fake accounts. Europol's assessment indicates widespread use across terrorist organisations. Small cells, FTFs, and individual terrorists use P2P payment services for procuring military equipment, chemicals, and propaganda materials. The report noted EoRMT groups' use of peer-to-peer payments for selling merchandise promoting extremist ideologies, forming a key revenue source. Online payment services facilitate donations to larger organisations, particularly when integrated with social networks and content hosting services, enabling recruitment, crowdfunding, and fund transfers through a single platform. The report concluded that online payment services provide less transparency than wire transfers, complicating the identification of transaction participants.
