The Financial Action Task Force (FATF) has strongly condemned the that killed 26 people, saying the assault could not have happened without financial backing and the ability to move funds across terror networks.
In a statement, the global terror financing watchdog, which removed Pakistan from the grey list in 2022, said that “money movement” was central to terrorism and such attacks, including the one in Pahalgam, would not be possible.
The mention of the Pahalgam attack by the FATF is rare and significant, and lends weight to India’s assertion that Pakistan-backed terror groups were involved in various terror attacks in India. This also indicates the global recognition of the threat of cross-border terrorism in India, and the critical role of financial flows in sustaining terror operations.
The FATF’s condemnation of the Pahalgam attack could help India push to include Pakistan again in the grey list, along with evidence and arguments that Islamabad has failed to take action against terror networks operating on its soil since 2022.
FATF’s statement indirectly underlined Pakistan-based terror financing routes, as India has consistently highlighted the use of hawala, NGOs and digital tools like cryptocurrency by terror groups operating from across the border.
The Paris-based watchdog flagged new-age risks such as the abuse of social media, crowdfunding and virtual assets – tools increasingly being used to bypass traditional surveillance systems.
FATF’s statement may help India push for tighter international scrutiny of Pakistan’s commitments under FATF’s grey list exit.
Pakistan was earlier in the grey list (a designation indicating a country under increased monitoring due to weaknesses in its anti-money laundering and counter-terrorism financing systems) from 2018 to 2022. The country was removed from the grey list in 2022.
India has been pushing for Pakistan’s return to the grey list, citing concerns about Pakistan’s failure to fully implement anti-terror laws as a condition of being removed from the list. New Delhi has also been providing FATF with evidence related to Islamabad’s terror infrastructure.
A comprehensive report on terror financing patterns will be released by the FATF soon, highlighting global case studies. A webinar will also be held to alert public and private players to emerging threats.
Earlier, FATF President Elisa de Anda Madrazo stressed the need for global unity in fighting terrorism, noting that terrorists need only one success, while countries must prevent every single attempt.