FATF Report on Terror Financing
The Financial Action Task Force (FATF) has identified the increasing abuse of digital platforms for terror financing, citing significant incidents in Pulwama (2019) and Gorakhnath Temple (2022). The report highlights the role of online payment services, virtual private networks (VPNs), and e-commerce platforms in facilitating these acts.
Key Findings
- State Sponsorship:
- The report notes the involvement of state sponsorship in terrorist financing (TF), either through direct financial support or logistical aid.
- Certain national governments have been implicated in providing support to terrorist organizations.
- Terrorist Financing Techniques:
- Utilization of trade and smuggling mechanisms to circumvent sanctions.
- Complex schemes involving commodities like oil and gold for money laundering.
- Case Studies:
- In the Pulwama attack, a critical component (aluminum powder) was procured via Amazon, highlighting the misuse of e-commerce platforms.
- For the Gorakhnath Temple attack, online payments and VPNs were used to transfer funds internationally, demonstrating the use of digital tools for lone-actor terrorism.
Decentralization of Terror Operations
- The report notes a shift towards decentralized operations, with regional hubs and self-financed cells adapting to local contexts.
- Al-Qaeda's shift from a central council to regional bodies like AQIS illustrates this trend.
Trade-Based Terrorist Financing
- Instances of storing funds as gold or jewelry have been flagged, with Indian authorities noting such practices among ISIL and Al-Qaida inspired individuals.
