Major Win for India as Global Watchdog FATF Flags State-Sponsored Terrorism for First Time

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Major Win for India as Global Watchdog FATF Flags State-Sponsored Terrorism for First Time

The Financial Action Task Force (FATF), the world's leading anti-terror financing body, has for the first time explicitly included a section on state-sponsored terrorism in its latest report. This significant move validates India's long-standing concerns, particularly regarding Pakistan's alleged role in funding terror organisations like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).

New Delhi, India – July 9, 2025 – In a landmark development for global counter-terrorism efforts, the Financial Action Task Force (FATF), the international apex body combating terror financing and money laundering, has introduced a dedicated section on "state-sponsored terrorism" in its comprehensive July 2025 report on Terrorist Financing Risks. This move is a considerable boost to India's consistent position, which has, since at least 2022, explicitly identified Pakistan as a source of terror financing.

The FATF's "Comprehensive Update on Terrorist Financing Risks" for July 2025 reveals that "a variety of publicly available sources of information and delegations’ inputs to this report indicate that certain terrorist organisations have been and continue to receive financial and other forms of support from several national governments." This powerful statement underscores a growing international consensus on a critical and persistent threat.

The report further elaborates that governments providing financial or other forms of support to terrorist organisations pose a long-standing danger to "international peace and security, as well as to the stability of regional financial and political systems." This direct acknowledgement by the FATF elevates the issue of state involvement in terror activities to a new level of scrutiny.

"Delegations reported on this trend by referring to the use of state sponsorship for terrorist financing (TF) either as a fundraising technique or as part of the financial management strategy of certain organisations engaging in terrorist acts," the report states. It details that this governmental support can take various forms, including direct financial assistance, logistical aid, material provisions, and even training for terrorist groups.

Sources close to the development highlighted that this finding significantly reinforces India's stance. "Back in 2022, India had identified state-sponsored terrorism from Pakistan as a source of terrorist financing risk in its money laundering and terrorist financing risk assessment," an insider explained. "The finding of the report reinforces India’s position. The FATF report also highlights the funding patterns of Pakistan-based LeT (Lashkar-e-Taiba) and JeM (Jaish-e-Mohammed)."

This explicit mention of state-sponsored terrorism, along with the detailed focus on funding patterns of Pakistan-based groups, marks a pivotal moment in the global fight against terror financing. It is expected to intensify pressure on nations suspected of supporting such activities and further bolster international cooperation in disrupting these dangerous networks.(source-The Hindu)

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