The latest FATF global report on terror financing has raised urgent alarms about how terrorist groups are exploiting e-commerce platforms and digital payment systems, with India being cited through specific and troubling case studies.
Key Findings from the FATF Report:
1. Pulwama Attack (2019):
-
Terrorists procured aluminium powder, used in IEDs, via Amazon.
-
Attack killed 40 CRPF personnel.
-
The logistics trail revealed direct use of e-commerce for sourcing explosive components.
-
The attack was linked to Jaish-e-Mohammed (JeM), based in Pakistan.
-
19 individuals, including 7 foreign nationals, were charged under UAPA.
2. Gorakhnath Temple Attack (2022):
-
The accused, inspired by ISIS, used PayPal to send ₹6.7 lakh to ISIL operatives.
-
Executed 44 international transactions, masked using VPNs.
-
Payments to VPN providers were made via Indian bank accounts.
-
PayPal suspended his account after detecting suspicious activity.
These examples illustrate the new tactics used by terrorists to avoid detection: peer-to-peer transactions, decentralised platforms, and pseudonymous accounts.
Broader Concerns Highlighted:
-
Fintech misuse: Terrorists sell goods online, buy chemicals, even use 3D-printed components.
-
Social media crowdfunding: Extremists solicit small donations, which are harder to trace but collectively significant.
-
VPN and pseudonym usage: Enables movement of funds without physical presence or clear identities.
-
State sponsorship: While unnamed, FATF acknowledges ongoing state-level support of terrorism, indirectly affirming India’s longstanding accusations against Pakistan.
India’s Stand and FATF Implications:
-
India has again called for Pakistan to be relisted in FATF's Grey List, citing mounting evidence of indirect state support for terrorism.
-
The April 2025 Pahalgam attack, which killed 26 people, was explicitly mentioned by FATF, indicating that such acts require “extensive financial and technological backing.”
FATF’s Recommendations to Nations:
-
Tighten oversight of:
-
E-commerce platforms
-
VPN usage
-
Fintech and online banking
-
-
Improve cross-border intelligence sharing.
-
Develop stronger real-time monitoring of P2P platforms.
-
Ensure compliance and reporting from payment processors like PayPal, Google Pay, etc.
-
Encourage private-sector cooperation to flag and freeze suspicious activities.
Final Takeaway:
This report is a wake-up call for all nations leveraging digital finance. It reveals that terrorism is evolving—from covert cash-based systems to legitimate-looking, tech-driven financial webs. Without proactive regulation and international coordination, these tools of convenience can rapidly become instruments of catastrophe.
