More Stories

Informist, Monday, Jun. 16, 2025

--Financial Action Task Force condemns Pahalgam terror attack 

--Fincl Action Task Force: To soon release analysis of terrorist financing 

NEW DELHI – Expressing "grave concern", the global money laundering and terror financing watchdog Financial Action Task Force condemned the "brutal terrorist attack" in Pahalgam in April. Without naming any country, the Financial Action Task Force, in a statement released Monday, said the Pahalgam attack in Jammu and Kashmir and similar terror attacks could not have occurred without movement of funds between "terrorist supporters".

"Terrorist attacks kill, maim and inspire fear around the world," the statement said. "This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters," it added. The statment comes after its plenary meeting held last week. 

The Financial Action Task Force had excluded Pakistan from the list of countries under increased monitoring or grey list in October 2022. A senior government official had in May said that the 

Indian government will push the global terror financing watchdog to reverse the move. 

The organisation said it has enhanced its focus on the effectiveness of measures countries have put in place to counter terrorist financing. According to government sources, this is the first time the concept or "state sponsored terrorism" is being acknowledged by Financial Action Task Force as a terror funding source. "The inclusion of state sponsored terrorism as a concept in the report demonstrates international recognition of state-sponsored terrorism by Pakistan," a source said.

Tensions escalated between India and Pakistan after Pakistan-based terrorists killed 26 people, mainly tourists, in Jammu and Kashmir's Pahalgam on Apr. 22. India launched Operation Sindoor in retaliation to Pahalgam attack on May 7 and destroyed terrorist camps at nine locations in Pakistan and Pakistan occupied Kashmir. This resulted in counter action by Pakistan. Both the sides arrived at an understanding to stop firing and military actions on May 10.

In the aftermath of the terrorist attack by Pakistan-based militant outfits in Pahalgam in April, India has been opposing funding to the neighbouring nation at all global platforms. Last month, New Delhi had raised concerns over International Monetary Fund's bailout package to Islamabad. The IMF board approved $7 billion loan to Pakistan despite India's protest. 

Earlier this month too, India "vehemently opposed" and expressed concern over Asian Development Bank providing financial support to Pakistan, after the multilateral development bank approved a $800 million programme to boost the country's public finances. "India cautioned the ADB regarding the possibility of misuse of its resources," a senior government source had said. "The linkage between Pakistan's increase in expenditure on its military, as opposed to on development, cannot be fully explained solely in terms of its domestic resource mobilisation."

The Financial Action Task Force, in the statment issued Monday, also said it has identified gaps that need to be addressed through mutual evaluations. "The FATF has developed guidance on terrorist financing risk to support experts that contribute to evaluations of over 200 jurisdictions in the global network," the statment said. Besides, it will also release a comprehensive analysis of terrorist financing, compiling cases provided by global network and also host a webinar to help public and private sectors understand the risks and stay alert to emerging threats.

According to another government source, the Financial Action Task Force has developed a terror financing risk and context toolkit for assessors, "so that rogue states like Pakistan cannot fool them with lies about terror financing risks from their jurisdictions." 

The statement by Financial Action Task Force also reiterated President Elisa de Anda Madrazo's recent message that "no single company, authority, or country can combat this (terrorism) 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."  End

US$1 = INR 86.07

Reported by Priyasmita Dutta

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.