FATF Report on Terrorist Financing Risks
The Financial Action Task Force (FATF) released a report titled ‘Comprehensive Update on Terrorist Financing Risks,’ highlighting recent cases of terrorism financing in India involving online payment services and Virtual Private Networks (VPNs).
Case Studies
- Gorakhnath Temple Attack (April 3, 2022)
- An individual influenced by ISIL ideology attempted a terror attack at Gorakhnath Temple, Uttar Pradesh.
- The attacker used online payment services and VPNs to fund activities.
- Pulwama Attack (February 2019)
- Jaish-e-Mohammed used an e-commerce platform to procure materials for a suicide attack on a CRPF convoy.
- Aluminum powder, a key explosive component, was purchased via Amazon.
E-commerce Platforms and Terror Financing
- Terrorists exploit e-commerce platforms and online marketplaces (EPOMs) for:
- Procuring equipment, weapons, chemicals, and 3D-printing materials.
- Trade-based money laundering/terror financing through fraudulent shop fronts and over/under invoicing.
- Fundraising by selling items including those obtained through wildlife exploitation or cultural artefact theft.
Methods of Raising or Transferring Terror Financing Funds
- Trafficking in humans, goods, drugs, and wildlife articles.
- Use of virtual assets, donations, and crowdfunding.
- Employment of shell entities and bank accounts, immediate cash withdrawals.
- Misuse of nonprofit organizations.
- Acts of extortion and kidnapping for ransom.
- Use of "hawala" channels.
