FATF Denounces Pahalgam Attack, Set to Address State-Sponsored Terrorism in New Report
The Financial Action Task Force (FATF), an international body dedicated to combating money laundering and terrorism financing, has denounced the April 22 terrorist attack in Pahalgam, Jammu and Kashmir. The organization emphasized the integral role that financial networks play in facilitating such violent acts.
According to an official statement from the FATF, the attack was only possible because of the availability of funds and financial support from terrorist backers. This marks the third instance in ten years where the FATF has issued a condemnation, reflecting increasing global concern about the financial systems that sustain extremist operations.
Insiders have disclosed that the FATF is set to unveil a groundbreaking report next month. This report is expected to, for the first time, acknowledge "state-sponsored terrorism" as a significant source of terrorism financing. This development represents a notable shift in the global counterterrorism narrative and supports India's ongoing claims regarding Pakistan's alleged involvement in sponsoring cross-border terrorism.
The forthcoming report from the FATF will provide an in-depth analysis of terrorism financing risks and will introduce a new toolkit aimed at assessing contextual risks. This initiative will aid countries in accurately identifying and bringing to light jurisdictions that support terrorist activities. India had previously submitted a dossier urging the FATF to reinstate Pakistan on the ‘grey list’ due to its continued financial and operational backing of terror outfits.
The FATF reiterated in its statement, “This, and other recent attacks, could not occur without money and the means to move funds. The international community feels the severity of the attack and highlights that such attacks will not go unpunished.”
India remains among the few nations whose National Risk Assessment highlights state-sponsored terrorism as a primary threat. The FATF's acknowledgment of this risk is anticipated to strengthen India's diplomatic initiatives to isolate nations that sponsor terrorism and improve global strategies to cut off terror financing at its source.
Additionally, the FATF plans to conduct a webinar in the next few weeks to assist stakeholders from both public and private sectors in understanding the evolving risks of terrorism financing and responding with effective policy measures.
