Fear Factor

Subhashis Mittra

Digital platforms such as social media, messaging applications and crowdfunding sites are being abused for rampant terror financing. The Financial Action Task Force (FATF)—the international apex anti-terror financing watchdog—has highlighted this in its latest report, which cited use of online payment services, virtual private networks (VPNs) and e-commerce platforms in the terror attacks in Pulwama (J&K) in February 2019 and Gorakhnath Temple (UP) in April 2022.

Without naming any country, the FATF said it had got reports from its delegations about the use of state sponsorship for terrorist financing (TF), either as fundraising technique or as part of the financial management strategy of certain organisations engaging in terrorist acts. Certain terrorist outfits have been getting and continue to get financial and other forms of support from several national governments, it said, attributing it to a variety of publicly available sources of information and inputs from delegations.

The report titled ‘Comprehensive Update on Terrorist Financing Risks’ said there have been several forms of support, including direct financial support, logistical and material support, or the provision of training. Delegations reported state sponsorship for TF purposes coupled with sanctions circumvention techniques through trade and smuggling mechanisms where the national government potentially plays a supportive role. Schemes involving several commodities have also been reported. For instance, oil was shipped to an intermediary country to be sold in gold, with gold later converted to cash in another jurisdiction.

The FATF earlier condemned the ‘brutal terrorist attack’ in Pahalgam (J&K) on April 22, noting that such attacks cannot occur ‘without money and the means to move fu