FATF condemns Pahalgam attack, to release terror financing report soon

This is the third time FATF has explicitly condemned a terrorist incident, following earlier statements in 2015 and 2019

The Financial Action Task Force (FATF) will soon release a comprehensive analysis on terror financing, compiling cases submitted by jurisdictions across its global network, it said in a statement on Monday.

 

The report will be the latest in FATF’s efforts to strengthen global measures against terror financing.

 

The intergovernmental body sets global standards to prevent money laundering, terror financing, and the financing of weapons of mass destruction.

 

“The FATF has been working for 10 years to help countries stay ahead of terror financing risk, including relating to abuse of social media, crowd funding, and virtual assets. To improve this picture, the FATF will soon release a comprehensive analysis of terror financing, compiling cases provided by our global network. We will also host a webinar to help public and private sectors understand the risks and stay alert to emerging threats,” FATF said.

 

 

In a statement issued on its website, FATF reaffirmed its support to over 200 jurisdictions to build and enhance their counter-financing of terrorism (CFT) frameworks.

 

It said the upcoming report will draw on case studies provided by member jurisdictions and focus on identifying gaps in existing systems.

 

The statement also condemned the terrorist attack that took place in Pahalgam on April 22. FATF said it “expresses grave concern and condemns” the attack, which claimed the lives of 26 tourists.

 

“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. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,” it stated. 

 

This is the third time the FATF has explicitly condemned a terrorist incident, following earlier statements in 2015 and 2019. 

 

The FATF said it has developed guidance on terror financing risks to support experts contributing to evaluations. It has also launched a terror financing risk and context toolkit aimed at improving how jurisdictions are assessed for CFT effectiveness.

 

The statement quoted FATF president Elisa de Anda Madrazo as saying, “No single company, authority, or country can combat this challenge alone. We must be unified against the scourge of global terrorism. Terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.”

 

This is the first time that the concept of “state-sponsored terrorism” is expected to feature in a FATF document as a source of terror financing.

 

Only India’s National Risk Assessment recognises state-sponsored terrorism from Pakistan as a key terror financing risk.

 

FATF has also developed a terrorist financing risk and context toolkit to help evaluators assess risks more effectively.

 

This is intended to ensure that jurisdictions cannot mislead evaluators about the terror financing threats emanating from their territory.

 

The FATF statement comes as India intensifies diplomatic efforts to hold Pakistan accountable for supporting terrorism.

 

A senior government official had said in May that India is preparing to submit a dossier at the upcoming FATF meeting, urging that Pakistan be re-listed on the grey terror list due to multiple failures. These include sheltering terrorists, misusing development funds for defence purposes, and not passing key legislation like the Anti-Terrorism (Amendment) Bill, 2020.

 

India has also opposed recent loan proposals for Pakistan at the International Monetary Fund (IMF) and World Bank, arguing that Pakistan’s rising defence expenditure undermines its claims of economic vulnerability.

 

Pakistan was removed from the grey list in 2022 after FATF acknowledged progress on its anti-money laundering and counter-terror financing frameworks.