FATF acknowledges terror strike in Kashmir, highlights concerns over cross-border financing
In an unprecedented move, the Financial Action Task Force (FATF) has publicly condemned the April 22, 2025, terrorist attack in Pahalgam, Jammu and Kashmir. This rare and sharply worded statement from the global financial watchdog is being viewed by analysts as a strategic opportunity for India to push for Pakistan’s re-entry into the FATF grey list.
“The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025,” read the official release, titled Strengthening Efforts to Combat Terrorist Financing. The statement emphasized that such attacks “could not occur without money and the means to move funds between terrorist supporters.”
India intensifies diplomatic efforts amid terror resurgence
India has reportedly shared new intelligence with several FATF Global Network members, citing evidence of operational terrorist infrastructure and ongoing cross-border financing networks. According to officials, New Delhi is actively working to build consensus within the over 200 jurisdictions that form the FATF alliance.
While Pakistan was removed from the grey list in 2022 after making compliance-based adjustments, Indian agencies maintain that the core terror ecosystem continues to operate with minimal disruption, concealed beneath temporary legal facades.
Recent attacks in Jammu and Kashmir, including the Pahalgam strike, are being highlighted as indicators that terror financing channels remain active.
Shift in FATF focus: From legislation to real-world effectiveness
In its statement, the FATF signaled a refined focus on tangible outcomes rather than just legal compliance. “The FATF has enhanced its focus on the effectiveness of measures countries have put in place,” the statement noted. It also referenced ongoing evaluations to identify and address structural gaps in global counter-terrorism financing efforts.
This shift aligns with India’s approach, which includes presenting a detailed dossier at recent FATF meetings. The report outlines digital money laundering methods, use of virtual currencies, and funding trails linked to terrorist proxies operating across borders.
Call for unified global action against terror financing
The FATF emphasized the collective challenge in combating terrorism: “We must be unified against the scourge of global terrorism. Because terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.”
Indian officials view the Pahalgam attack as not only a domestic tragedy but also a pivotal moment to hold the responsible parties accountable on a global stage. With FATF’s direct acknowledgment, the expectation from New Delhi is clear — the watchdog must now back its words with concrete action.
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