FATF condemns Pahalgam terror attack

In a rare and strongly worded statement, the Financial Action Task Force (FATF) has condemned the recent terror attack in Pahalgam, asserting that such an incident could not have occurred without substantial financial backing. The FATF, a global intergovernmental watchdog responsible for setting standards to combat money laundering, terrorist financing, and other threats to the international financial system, emphasized that the Pahalgam attack—along with other recent terror incidents—was made possible by the movement of funds among terrorist networks and supporters.

This condemnation is particularly noteworthy, as FATF rarely issues such statements on individual terrorist acts. In fact, this marks only the third time in the last decade that the organisation has publicly denounced a specific act of terrorism. Even more significantly, it is the first time FATF has acknowledged "state-sponsored terrorism" as a potential source of terror financing—an important and politically sensitive development in global counter-terrorism discourse.

In its official response, the FATF reaffirmed its commitment to supporting the efforts of over 200 jurisdictions within its Global Network to strengthen counter-financing of terrorism (CFT) frameworks. These include laws, regulations, and operational practices designed to detect, prevent, and disrupt financial support to terrorist groups.

Adding weight to the organisation’s stance, FATF President Elisa de Anda Madrazo recently stressed that no single company, authority, or nation can tackle the menace of terrorism alone. She called for global unity and multilateral cooperation in confronting the evolving threats posed by international terrorism and its financial enablers.

Looking ahead, the FATF is set to release a comprehensive analysis of terrorist financing, which will include real-world case studies provided by its Global Network. This report is expected to enhance the understanding of terrorist financial mechanisms, improve international coordination, and help policymakers and enforcement agencies detect and disrupt funding channels with greater precision.

As our correspondent notes, the Pahalgam attack has not only shaken the region but has also catalyzed global scrutiny of terror finance, with this FATF condemnation serving as a call for urgent and unified global action.