FATF condemns Pahalgam assault, to release report on ‘state-sponsored terror’ for first time

The Financial Action Task Force is the worldwide cash laundering and terrorist financing watchdog and units worldwide requirements that goal to forestall these unlawful actions. File
| Photo Credit: AP

The Financial Action Task Force (FATF), the apex inter-governmental anti-terror financing watchdog, has issued an announcement condemning the Pahalgam terror assault, noting that it “could not occur without money and the means to move funds between terrorist supporters”.

According to sources, this can be a important condemnation as it’s only the third time within the final decade {that a} terror assault has been condemned by the FATF. Further, it’s learnt, that the FATF will release a report subsequent month which, for the first time, will embody state-sponsorship as a separate supply of funding of terror.

The Hindu had reported earlier about how the federal government was sending a file to the FATF to argue in favour of together with Pakistan within the ‘grey list’ of nations that warranted higher scrutiny. 

“Terrorist attacks kill, maim and inspire fear around the world,” the FATF mentioned in an announcement. “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.”

According to sources conscious of those developments, the FATF “rarely” points a condemnation of terrorist acts. 

“It is only the third time in the last decade that they have issued a condemnation of a terrorist attack,” the supply mentioned. “It has issued the condemnation because the international community has felt the severity of the attack and highlights that such attacks will not go unpunished.”

According to the sources, the ⁠FATF has additionally developed a Terror Financing Risk & Context toolkit for assessors, in order that international locations akin to Pakistan can’t “fool them with lies” concerning the terror financing dangers from their jurisdictions.

The FATF will quickly release a complete evaluation of terrorist financing and can host a webinar to assist private and non-private sectors perceive the dangers, and keep alert to rising threats. Sources mentioned this report can be out in a month.

“The ⁠FATF is releasing a report on terror financing risks in a month’s time,” the supply mentioned. “This is the first time the concept of ‘state-sponsored terrorism’ is being acknowledged by FATF as a funding source. Only India’s National Risk Assessment recognises state-sponsored terrorism from Pakistan as a key terror financing risk.”