FATF condemns Pahalgam terror attack, to dissect terror financing trends
The FATF rarely condemns terrorist acts, and this is only the third time in the last decade that it has done so.
NEW DELHI : New Delhi: Condemning the 22 April terror attack in Jammu & Kashmir in which 26 tourists were killed, a global agency that develops policies to combat money laundering and terrorism financing has said it will soon come out with a thorough analysis of trends in terror financing.
The statement on Monday from the Paris-headquartered Financial Action Task Force (FATF) comes in the wake of India’s efforts to put global pressure on Pakistan, which it holds responsible for the terrorist attack in Pahalgam.
FATF said 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 statement posted on its website said.
The agency said it supports more than 200 jurisdictions within its global network to build and enhance their measures for counter-financing of terrorism (CFT), including through the strategic use of financial intelligence–making this one of the most powerful instruments for dismantling terrorist financing networks.
FATF said it has been working for 10 years to help countries stay ahead of terrorist financing risk. “To improve this picture, 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 agency stated.
A person informed about the development said FATF rarely issues condemnation of terrorist attacks and this is only the third such instance in the past decade that it has done so. It has issued the condemnation because the international community has felt the severity of the attack and spotlights that such attacks will not go unpunished, said the person, who spoke on condition of not being named.
FATF is releasing a report on terror financing risks in a month’s time and it is the first time the concept of “state sponsored terrorism" is being acknowledged by the global agency as a funding source, said the person.
“Only India’s National Risk Assessment (NRA) recognises state-sponsored terrorism from Pakistan as a key terror financing risk. The inclusion of ‘state sponsored terrorism’ as a concept in the report demonstrates international recognition of state-sponsored terrorism by Pakistan," added the person.
India is stepping up pressure on Pakistan to ensure that the money it secures from multilateral agencies are used for their stated purposes and not for defence.
To be sure, after the Pahalgam terrorist attack, India launched retaliatory strikes on terror camps in Pakistan and Pakistan-occupied Kashmir in May and objected to multilateral funding from the IMF (International Monetary Fund) and the ADB (Asian Development Bank) to Pakistan.
Pakistan recently secured a $2.4 billion funding from IMF for economic reforms and to build economic and climate resilience. It also secured a $800-million programme from ADB to strengthen fiscal sustainability and to improve public financial management.
In the country’s federal budget for FY26 presented on 10 June, Islamabad raised its defence budget by 16.8% in FY26 to ₹2.55 trillion, Pakistan’s budget document showed.
topics
