New Delhi: Condemning the brutal Pahalgam terror attack in April, global watchdog FATF Monday said it has enhanced its focus on the effectiveness of measures countries have put in place to combat terror financing.
“Terrorist attacks kill, maim and inspire fear around the world. The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam 22 April 2025. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,” the Financial Action Task Force (FATF) said in a statement.
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.
On April 22, Pakistan-trained terrorists killed 26 people in Pahalgam, Kashmir.
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 August 25 and the next FATF plenary and working group meeting 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.
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.
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/combatting the financing of terror (AML/CFT) system.
The FATF is the global money laundering and terrorist financing watchdog and sets international standards that aim to prevent these illegal activities.
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.
“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,” it added.
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
