NEW DELHI: The Financial Action Task Force (FATF) on Monday condemned the bloody terror attack in Pahalgam on April 22, declaring that it would be stepping up its scrutiny of how effectively countries are combating 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 on 22 April 2025. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,” the global watchdog said in a statement, according to news agency PTI.The FATF’s remarks come as India continues to highlight Pakistan’s alleged role in sponsoring cross-border terrorism and diverting international financial aid towards arms procurement. Sources suggested to PTI that Pakistan’s activities warrant a fresh push to bring the country back into FATF’s “grey list”.
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On April 22, Pakistan-backed terrorists killed 26 civilians in Kashmir’s Pahalgam. New Delhi has repeatedly highlighted how Pakistan has been offering safe haven to designated terrorists. The claim gained further traction when senior Pakistani military officials reportedly attended the funerals of terrorists killed in Indian military strikes on May 7.In preparation for the upcoming Asia Pacific Group (APG) meeting on August 25 and the FATF plenary and working group sessions on October 20, India is compiling a detailed dossier on Pakistan’s alleged violations and lapses under FATF’s anti-money laundering and terror financing guidelines. India has planned to formally press for Pakistan’s grey listing at these meetings.At present, 24 countries are under FATF’s “grey list,” which flags nations under increased monitoring due to strategic weaknesses in combating money laundering, terror financing, and proliferation financing. Grey-listed countries are required to quickly address these vulnerabilities under FATF’s close watch.Pakistan’s association with the grey list has been long and intermittent. First added to the list in February 2008, Pakistan was removed in June 2010, only to return in February 2012. It was dropped again in February 2015 but was re-listed in June 2018 and remained under scrutiny until October 2022, when FATF removed Pakistan but advised continued cooperation with the Asia Pacific Group to strengthen its anti-money laundering and counter-terror financing systems.The FATF, which serves as the international standard-setter for fighting money laundering and terror financing, stated in its statement that it is working alongside over 200 jurisdictions to bolster counter-financing of terrorism (CFT) frameworks worldwide, using financial intelligence as a key weapon to break terror funding chains.“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,” the FATF said.For more than a decade, the watchdog has been working to help countries stay ahead of terrorist financing threats, including the exploitation of social media platforms, crowdfunding, and digital 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,” the statement added.At the recent ‘No Money for Terror Conference’ in Munich, FATF President Elisa de Anda Madrazo stressed the importance of global cooperation, saying: “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.”
