{"id":54042,"date":"2025-07-09T10:00:19","date_gmt":"2025-07-09T04:30:19","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=54042"},"modified":"2025-07-09T11:44:51","modified_gmt":"2025-07-09T06:14:51","slug":"fatf-highlights-digital-platforms-in-terror-financing","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/fatf-highlights-digital-platforms-in-terror-financing\/","title":{"rendered":"FATF Highlights Digital Platforms in Terror Financing: Pulwama &#038; Gorakhnath Attacks"},"content":{"rendered":"<h2><b>FATF Terror Financing Report Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Financial Action Task Force (FATF), in a report, highlighted that digital platforms\u2014including online payments, VPNs, social media, and e-commerce\u2014were misused in the Pulwama (2019) and Gorakhnath Temple (2022) terror attacks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report, titled <\/span><i><span style=\"font-weight: 400;\">\u2018Comprehensive Update on Terrorist Financing Risks\u2019<\/span><\/i><span style=\"font-weight: 400;\">, serves as a global alert on the evolving and increasingly complex methods of terrorist financing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It warned that such platforms are increasingly being exploited for terror financing.<\/span><\/li>\n<\/ul>\n<h2><b>Financial Action Task Force (FATF)<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FATF is an intergovernmental policy-making body established in 1989 at the G7 Summit in Paris.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its primary objective is to develop policies to combat money laundering (ML), terrorist financing (TF), and other related threats to the integrity of the international financial system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: inherit;\">Headquarters &#8211; <\/b><span style=\"font-weight: 400;\">FATF is headquartered in Paris, France, and functions out of the Organisation for Economic Co-operation and Development (OECD) headquarters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: inherit;\">Members<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FATF comprises 39 members, including 37 jurisdictions and 2 regional organizations (European Commission and Gulf Cooperation Council).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India became a full member of the FATF in 2010, which enhanced its global financial credibility.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: inherit;\">Key Functions &amp; Roles<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Setting International Standards for combating Money Laundering and Terror Financing through its famous 40 Recommendations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitoring Compliance of member and non-member countries with those standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conducting Mutual Evaluations to assess effectiveness of anti-money laundering and counter-terrorist financing measures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issuing Public Statements to identify high-risk and non-cooperative jurisdictions (also known as the FATF Grey List and Black List).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encouraging Legal, Regulatory, and Operational Reforms in financial systems globally.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>FATF Flags Rising Misuse of Digital Platforms for Terror Financing<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The FATF report highlights how terrorists involved in the Pulwama (2019) and Gorakhnath Temple (2022) attacks used online payment services, VPNs, and e-commerce platforms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It warns that social media, messaging apps, and crowdfunding sites are increasingly being exploited for financing terrorism.<\/span><\/li>\n<\/ul>\n<h3><b>State-Sponsored Terror Financing<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Without naming countries, the report notes that some national governments continue to financially and materially support terrorist organisations.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This includes direct funding, logistical support, training, and sanctions circumvention via trade and smuggling.<\/span><\/li>\n<\/ul>\n<h3><b>Complex Financial Schemes<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The FATF also points to commodity-based schemes, such as oil-to-gold-to-cash transactions involving multiple jurisdictions, used to move terror funds while evading detection.<\/span><\/li>\n<\/ul>\n<h3><b>Decentralisation of Terror Networks<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The FATF report flags a global shift in terror operations towards decentralised structures, with regional financial hubs and self-financed cells adapting to local contexts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These cells use criminal proceeds, business investments, and local resources to sustain activities.<\/span><\/li>\n<\/ul>\n<h3><b>Pahalgam Attack and FATF&#8217;s Prior Warning<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The FATF condemned the April 22 Pahalgam attack, stating that such terror acts are not possible without financial support and money transfer mechanisms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It had announced plans for a detailed analysis on terrorist financing.<\/span><\/li>\n<\/ul>\n<h3><b>Storage and Trade-Based Terror Financing<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FATF also noted gold and jewellery being used for storing small funds by ISIL or Al-Qaeda-inspired individuals in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trade-based financing schemes and decentralised decision-making\u2014like Al-Qaeda in the Indian subcontinent (AQIS) managing operations independently\u2014reflect an evolving strategy in terror financing globally.<\/span><\/li>\n<\/ul>\n<h3><b>Other Channels of Terror Financing<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report identified various other funding methods:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Human trafficking, wildlife smuggling, drugs, and virtual assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Donations, shell entities, shell accounts, and mobile apps.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Hawala routes, crowdfunding, extortion, and ransom collection.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Misuse of non-profit organisations.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Pulwama Attack: E-Commerce Misuse<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the 2019 Pulwama attack, aluminum powder\u2014a key component of the IED\u2014was procured via Amazon, revealing how e-commerce platforms can be exploited for acquiring materials used in terror attacks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Authorities attributed the attack to Jaish-i-Mohammed, with evidence of cross-border movement of explosives.<\/span><\/li>\n<\/ul>\n<h2><b>Gorakhnath Attack: VPNs and Online Payments<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2022 Gorakhnath Temple attacker, influenced by ISIL ideology, used VPNs to hide his identity and PayPal to transfer \u20b96.69 lakh ($7,736) internationally.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He also received foreign funds and sent money to ISIL-linked individuals abroad. PayPal later suspended the account due to suspicious activity.<\/span><\/li>\n<\/ul>\n<h2><b>Conclusion: Exploitation of Digital Infrastructure<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report underscores a growing trend of misusing digital tools\u2014e-commerce, VPNs, and online payment systems\u2014for planning, funding, and executing terrorist acts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This highlights the urgent need for regulatory oversight and monitoring.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <a href=\"http:\/\/indianexpress.com\/article\/india\/fatf-report-pulwama-gorakhnath-attackers-used-online-sites-10114382\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IE<\/span><\/a><span style=\"font-weight: 400;\">\u00a0| <\/span><a href=\"https:\/\/www.thehindu.com\/news\/national\/accused-in-two-terror-attacks-in-india-used-online-payment-services-e-commerce-platforms-and-vpns-fatf-report\/article69787876.ece\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">TH<\/span><\/a><span style=\"font-weight: 400;\">\u00a0| <\/span><a href=\"https:\/\/www.hindustantimes.com\/india-news\/fatf-report-flags-misuse-of-digital-platforms-in-terror-attacks-101752001975659.html\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">HT<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FATF reveals misuse of VPNs, e-commerce &#038; online payments in Pulwama and Gorakhnath attacks. India cited in global terror financing trends.<\/p>\n","protected":false},"author":18,"featured_media":54062,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[1414,60,22,59],"class_list":{"0":"post-54042","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-fatf-terror-financing-report","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=54042"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/54062"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=54042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=54042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=54042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}