The Financial Action Task Force (FATF), the global body that combats money laundering and terrorist financing, has strongly condemned the April 22, 2025, terrorist attack in Pahalgam, Jammu and Kashmir, where 26 people were killed. The FATF stated that the attack "could not occur without money and the means to move funds between terrorist supporters," highlighting the critical role of financial networks in enabling terrorist activities. This forceful statement comes amid increased scrutiny of countries' efforts to combat terror financing and rising tensions between India and Pakistan.
In its official statement released on Monday, June 16, 2025, the FATF expressed grave concern over the Pahalgam attack, emphasizing that terrorist acts "kill, maim and inspire fear around the world." The organization underscored that such attacks require financial resources and the ability to transfer these funds among those who support terrorism. The FATF's condemnation is significant, as it rarely issues such statements, marking only the third time in the last decade that it has directly condemned a terrorist act. This unusual step underscores the international community's deep concern regarding the severity of the Pahalgam attack and sends a clear message that such acts will not be tolerated.
While the FATF statement did not explicitly name Pakistan, it comes against the backdrop of India's persistent অভিযোগ that Pakistan provides support and funnels multilateral funds for arms procurement to terrorist organizations. Indian authorities have linked Lashkar-e-Taiba and its offshoot, TRF, to the Pahalgam attack. Following the attack, India has been building a case to have Pakistan placed back on FATF's "grey list," a list of countries under increased monitoring for money laundering and terrorist financing. Pakistan has been on and off the grey list multiple times since 2008 and was removed in October 2022 after committing to improve its anti-money laundering and counter-terrorist financing systems.
The FATF is intensifying its focus on how effectively countries are implementing measures to combat terrorist financing. The organization is developing a new framework to counter terror financing and will soon release an in-depth analysis of terrorist financing, which will compile cases from its global network. This analysis aims to identify gaps in existing measures and provide guidance to experts evaluating the counter-terrorism efforts of over 200 jurisdictions within the FATF's Global Network. Furthermore, the FATF plans to host a webinar to educate both the public and private sectors about terrorist financing risks and emerging threats. These include the abuse of social media, crowdfunding platforms, and virtual assets, which terrorists increasingly use to bypass traditional financial surveillance.
Elisa de Anda Madrazo, the President of FATF, recently stressed the importance of international cooperation in combating terrorism, stating that "No single company, authority, or country can combat this challenge alone. We must be unified against the scourge of global terrorism." She highlighted the constant need for vigilance and success in preventing terrorist acts, emphasizing that terrorists only need to succeed once, while counter-terrorism efforts must succeed every time. As India prepares for the upcoming Asia Pacific Group (APG) meeting in August and the FATF plenary in October, it is compiling a comprehensive dossier on Pakistan's alleged failures to comply with FATF's anti-money laundering and terror financing norms. This action underscores India's determination to hold Pakistan accountable for its role in supporting terrorism and to push for its re-inclusion on the FATF grey list.
