Manas Dasgupta
NEW DELHI, June 16: In a rare and unusual move that can strengthen India’s demand to put Pakistan back on the grey list, the Financial Action Task Force (FATF), the global terror watchdog, has acknowledged and condemned the brutal terror attack on tourists in Pahalgam in Jammu and Kashmir on April 22 in which 26 people were killed.
The statement issued by the FATF is a move, seen by the strategic and geopolitical observers, as a potential opening for India’s renewed push to put Pakistan back on the grey list.
In its official statement, the FATF has highlighted that the Pahalgam attack and other terror attacks could not take place without “money and funds” from terror supporters. “Terrorist attacks kill, maim and inspire fear around the world. The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,” reads the FTAF official statement.
“The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025,” said the global watchdog in the public release titled – “Strengthening Efforts to Combat Terrorist Financing.”
This stark admission by the FATF apparently comes amid fresh diplomatic efforts by India to highlight the resurgence of cross-border terrorism and expose the financial networks behind it. Top Indian officials have reportedly shared intelligence with key member countries in the FATF’s Global Network — which includes over 200 jurisdictions — in a bid to build consensus for putting Pakistan back on the grey list for any financial assistance.
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Even though Pakistan was removed from the grey list in 2022 after years of compliance measures and other efforts, Indian agencies and diplomatic authorities argue that the operational infrastructure of terror remains either untouched or still being nurtured – merely masked by temporary legal facades. The Pahalgam attack, and a string of recent strikes in Jammu and Kashmir, are being cited as proof that financing routes remain active.
In its statement the FATF, without naming Pakistan, added it will be setting out a framework to combat terrorist financing. It too, has signalled a shift in their approach through the statement. “In addition to setting out the framework for combating terrorist financing, the FATF has enhanced its focus on the effectiveness of measures countries have put in place,” the statement stated. “That is how, through our mutual evaluations, we have identified gaps that need to be addressed,” it added.
New Delhi considers this evolving emphasis – from legal frameworks to on-ground effectiveness – as a crucial opportunity. According to some senior officials, India has compiled a fresh dossier tracing fund flow, tech-enabled money laundering, and virtual currency abuse linked to terror proxies, to be presented at upcoming FATF and other global platforms. In fact, India presented its case in the recent concluded FATF meetings.
The FATF also acknowledged the changing nature of terrorist financing: “We must be unified against the scourge of global terrorism. Because terrorists need to succeed only once to achieve their goal, while we have to succeed every time to prevent it.” For India, the Pahalgam attack is more than a domestic tragedy — it’s a rallying point for global accountability. And this time, the pressure is on FATF to match its words with action.
The FATF has also “enhanced its focus on the effectiveness of measures countries have put in place. That is how, through our mutual evaluations, we have identified gaps that need to be addressed. The FATF has developed guidance on terrorist financing risk to support experts that contribute to evaluations of the 200+ jurisdictions in the Global Network,” the official statement added.
The global watchdog’s statement comes against the backdrop of heightened tensions between India and Pakistan after the April 22 attack. While Pakistan has denied involvement in the Pahalgam attack, Indian authorities have linked Pakistan-based terror organisation Lashkar-e-Taiba and its offshoot group “The Resistant Front” (TRF) to the terror attack.
Following the attack, Indian authorities have also flagged Pakistan’s support and funding for cross-border terrorism. Official sources said Indian authorities were working to put Pakistan’s name on FATF grey list.
The global watchdog’s grey list currently includes 24 countries, which are being monitored for money laundering, terrorist financing, and proliferation financing. Pakistan has been included on the FATF’s grey list several times. The first time the country was named was in 2008, but it was later removed in 2010.
Later on, Pakistan was once again placed on the grey list in 2012 and removed in 2015. It was brought back on the list in June 2018 and removed in October 2022.
