In its latest 2025 report, the Financial Action Task Force (FATF) introduces the concept of state-sponsored terrorism for the first time, calling it a significant threat to global peace, regional financial systems, and political stability. State-sponsored terrorism refers to governments actively funding terrorist activities as state policy. India had earlier flagged Pakistan’s state-sponsored terrorism as a major financing risk in its 2022 ML/TF risk assessment. FATF’s findings now reinforce India’s position, highlighting Pakistan-based groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) as key players in terror financing.
Key Highlights From FATF Report
| Aspect | Details |
|---|---|
| New Concept | State-sponsored terrorism defined and flagged |
| India’s Role | Validated concerns on Pakistan-based terror groups |
| Attack Case Study | Pulwama 2019 attack linked to e-commerce funding |
| Terrorism Trend | Shift from centralized to decentralized networks |
| FATF’s Function | Sets global anti-money laundering standards |
FATF Details Terror Funding Methods And Key Attacks
The FATF report uncovers alarming funding tactics, including the use of e-commerce platforms by Pakistan-based terrorists to procure materials for attacks in India. Specifically, it cites the Pulwama attack of February 2019, where Jaish-e-Mohammed orchestrated a suicide bombing that killed 40 paramilitary personnel. Investigations revealed a cross-border smuggling of explosives, including aluminum powder bought through Amazon’s EPOM platform, which increased the blast’s lethality. These insights expose how modern technology facilitates terror financing and attack preparations.
FATF Highlights Decentralized Terrorism Networks Worldwide
Beyond state-sponsored terror, FATF notes a global shift toward decentralization in terrorist operations. Al Qaeda, for example, evolved from a centralized command to regional branches like AQIM, AQAP, JNIM, AQIS, and Al Shabaab. These local cells manage operations and fundraising independently while loosely connected to the central leadership. FATF stresses terrorists’ adaptability in exploiting global financial systems to fund attacks, posing ongoing risks to international security.
About FATF And Its Role In Counterterror Financing
The FATF, an inter-governmental body, crafts global policies against money laundering and terrorist financing. Its recommendations form the international standard for combating financial crimes. This 2025 report updates the previous comprehensive 2015 terrorist financing risk analysis, emphasizing persistent terrorist exploitation of the financial ecosystem.
(With Inputs From ANI)
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