News Brief
FATF Raises Alarm On Terrorists Misusing E-Commerce, Online Payment Platforms; Cites Pulwama And Gorakhnath Temple Attacks
The aftermath of the attack in Pulwama (Waseem Andrabi/HT/GettyImages)
The Financial Action Task Force (FATF) has flagged the increasing misuse of e-commerce platforms and online payment services by terrorist groups, India Today reported.
The global anti-terror financing body cited cases from India, including the 2019 Pulwama attack and the 2022 Gorakhnath Temple incident, as key examples of the evolving threat.
FATF's latest global report on terror financing risks highlights the growing exploitation of digital tools and financial technologies by terrorists.
These entities are using increasingly sophisticated methods to raise, transfer, and manage funds.
The report highlights that in the 2019 Pulwama terror attack, aluminium powder—a key component used to enhance the explosive power of improvised explosive devices (IEDs)—was sourced through an e-commerce platform.
The blast killed 40 CRPF personnel and was linked to Pakistan-based terror group Jaish-e-Mohammed (JeM).
Investigators found that online platforms had played a role in the logistics and preparation of the attack.
The investigation led to charges against 19 individuals, including seven foreign nationals, under the Unlawful Activities (Prevention) Act. Authorities also seized several assets, including vehicles and hideouts, during the probe.
The FATF report also delves into the April 2022 Gorakhnath Temple attack, carried out by an ISIS-inspired individual who attacked security personnel.
The attacker used PayPal to transfer around Rs 6.7 lakh overseas to fund Islamic State (ISIL) operatives.
PayPal eventually suspended his account after detecting suspicious activity.
The FATF pointed to this as part of a troubling trend where extremists increasingly rely on fast, cost-effective, and hard-to-trace online payment channels.
The report also points to the rapid growth of fintech platforms over the past decade, which has opened new channels for terrorists to fund their operations.
Terrorist groups are now creating decentralised financial networks by selling small items online, purchasing explosive components like 3D-printed parts, and soliciting donations via social media. These networks are more challenging to track.
FATF highlights the unique challenge posed by peer-to-peer (P2P) payments, which often enable the use of pseudonyms and fake accounts. These transactions bypass traditional financial systems, making them harder to trace.
The FATF also raised concerns that some governments continue to offer direct or indirect support to terrorist organizations. Though no specific countries are named, the report cites evidence from multiple delegations and open sources, underscoring the persistent threat of state-sponsored terrorism.
India has consistently accused Pakistan of harboring and funding terrorists. In light of these findings, India has renewed its call for Pakistan’s re-listing on FATF’s 'Grey List.'
The FATF report concludes with a firm recommendation for member nations to intensify oversight of e-commerce platforms, VPN usage, and digital financial services, stating that these systems have evolved into new-age tools for terrorists to raise funds, procure equipment, and organise attacks.
