Global terror financing body FATF condemns Pahalgam terror attack

By | June 17, 2025
FATF condemns Pahalgam terror attack during global statement

In a strong and rare statement, the Financial Action Task Force (FATF) condemned the recent terror attack in Pahalgam, Jammu and Kashmir. The global watchdog described the assault as brutal and emphasized that it would not have happened without financial backing. This bold stance has given India’s long-standing concerns over terror financing fresh international momentum.

A Shift in Global Tone

Unlike routine condemnations, this is only the third time in a decade that FATF has spoken out after a specific terrorist attack. Earlier, it made similar statements after the 2015 Paris attacks and the 2019 Sri Lanka bombings. Clearly, the body now views terror financing as a top global security threat.

FATF’s latest statement declared, “This act could not have occurred without money and the means to move funds.” Such clarity reflects a growing global consensus: money enables terror. Without resources, terror plots remain on paper.

Terrorism’s Financial Backbone

Terrorism is not just about ideology or weapons. At its core, it’s also about funding. Groups require money for recruitment, travel, logistics, weapons, and communication. Cutting off financial access makes these operations far harder to carry out.

Therefore, FATF is shifting the focus from visible violence to the invisible networks that fund it. It urges countries to tighten controls and close loopholes in their banking, crypto, and donation systems.

A New Direction: State-Sponsored Terror in Focus

For the first time, FATF will address state-sponsored terrorism in an official document. This is a significant shift. Previously, the group avoided mentioning governments. However, this step signals a readiness to hold states accountable when they ignore or support terror funding.

As a result, nations that fail to take action may land on the grey list, which comes with serious consequences. Inclusion in this list affects credit ratings, limits access to international markets, and drives investors away.

India’s Role and Reaction

India has long demanded global attention to terror financing, particularly from across its borders. New Delhi welcomed FATF’s statement, calling it “a timely recognition of how deeply terrorism depends on financial support.” This gives India a stronger voice at upcoming global security forums.

Moreover, Indian officials plan to push for tougher monitoring and real consequences for nations that repeatedly fall short. With stronger global support, India’s case for coordinated action grows even stronger.

FATF’s New Tools and Initiatives

To strengthen the crackdown, FATF has announced several proactive steps:

  • Terrorist Financing Risk Toolkit: This helps countries assess and close vulnerabilities in their financial systems.
  • Global Case Study Report: A detailed report will explore how terror groups transfer money across borders.
  • Awareness Campaigns: Webinars and training sessions will engage banks, regulators, and the private sector to ensure better monitoring.

Through these tools, FATF hopes to not just react to attacks like the one in Pahalgam, but to prevent the next one.

Why the Grey List Matters

Countries on FATF’s grey list suffer real setbacks. They face tougher borrowing conditions, reduced trade, and higher scrutiny from global institutions. For example, Pakistan saw deep economic effects while on the list.

Because of this, nations are now more motivated than ever to reform their laws, improve transparency, and prosecute terror financers. Those who fail to act face isolation.

Connecting the Dots: Money and Violence

A senior Indian official summed it up: “No money, no terror.” This simple message cuts through complexity. Behind every attack lies a network of financial transactions, often hidden but trackable.

Banks, charities, cryptocurrency platforms, and hawala networks often unknowingly carry terror-linked funds. That’s why FATF urges stronger collaboration across all sectors.

Additionally, FATF stresses the need for early detection. Once money moves freely, it becomes harder to trace and stop. By acting early, governments and financial institutions can disrupt entire plots before they unfold.

Conclusion: A Turning Point?

The Pahalgam attack serves as a grim reminder of ongoing threats. Yet FATF’s strong statement could be a turning point. It reflects a global shift — away from silence and toward coordinated, preventive action.

If FATF’s recommendations translate into real reforms, the funding routes of terrorism may shrink. More importantly, fewer lives might be lost in attacks that were once preventable.

Stopping terror is not just about stronger armies or more police. It begins with closing the wallets that keep terror alive.