Indian authorities have repeatedly highlighted Pakistan’s continued support for terrorism and its alleged diversion of multilateral funds towards arms procurement. India maintains that Pakistan provides safe haven to designated terrorists, and, according to sources, believes this warrants Pakistan’s return to the FATF “grey list”.The FATF flagged the increasing abuse of e-commerce platforms and online marketplaces by terrorists. It noted that such platforms are being used for operational procurement—including equipment, weapons, chemicals, and 3D printing materials.“Terrorists have used these platforms to sell items to finance their projects and operations, including lower-value items that were previously not in demand,” the report said. “They can be used for fund-moving purposes inspired by trade-based money laundering schemes. Traded goods can indeed offer disguise to value being transferred from an accomplice to another member of the network. In such a scheme, the first actor would purchase items, send them to his accomplice through a platform, for the latter to sell in another jurisdiction and use the profits to finance terrorism.”Detailing another case study, the FATF referred to the April 3, 2022, attempted breach at Gorakhnath Temple, where an individual influenced by Islamic State in Iraq and the Levant (ISIL) ideology attacked security personnel before being apprehended.The financial investigation revealed the accused had transferred ₹669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and VPN services to obscure his IP address. He also received ₹10,323.35 (USD 188) from a foreign source.Further scrutiny found that the individual paid a VPN provider via his bank account. A detailed analysis of his PayPal account, accessed through email, showed approximately 44 international third-party transactions amounting to ₹669,841 (USD 7,736). He had also received funds from a foreign PayPal account.“Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused’s account, thereby preventing further illicit fund transfers,” the FATF noted, citing a case study provided by India’s Ministry of Finance.The report added: “As the offer of online payment services from Fintech companies grew substantially over the last 10 years, cases of terrorists opting for those services can be observed across all contexts, especially as it offers an opportunity to diversify fund-moving channels. These payment services also appear attractive for terrorist organisations for the low-cost and fast money transfer solutions they offer, with the possibility for enhanced opacity on initiators and beneficiaries through pseudonyms or fake accounts.”
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