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The Financial Action Task Force (FATF), the leading global authority monitoring anti-terror financing, has incorporated a distinct section regarding state-sponsored terrorism in its report for the first time. Sources indicate that this reinforces the stance taken by India since at least 2022, when it identified Pakistan as a contributor to terror financing.
“A variety of publicly accessible information sources and input from delegations for this report suggest that certain terrorist organizations have received and continue to gain financial and other support from various national governments,” the FATF stated in the July 2025 Comprehensive Update on Terrorist Financing Risks.
The report further stated that the potential for governments to extend financial or other support to terrorist organizations remains a persistent threat to “international peace and security, as well as the stability of regional financial and political systems.”
“Delegations addressed this trend, noting the utilization of state sponsorship for terrorist financing (TF) either as a fundraising method or as part of the financial strategy for specific organizations involved in terrorist activities,” the report elaborated.
Additionally, it indicated that such governmental backing for terrorist endeavors has manifested in various ways, including direct financial assistance, logistical and material aid, and the provision of training.
“In 2022, India had already identified state-sponsored terrorism emanating from Pakistan as a risk factor for terrorist financing in its assessment of money laundering and terrorist financing risks,” a source mentioned. “The findings of this report bolster India’s viewpoint. The FATF report also sheds light on the funding dynamics of the Pakistan-based LeT (Lashkar-e-Taiba) and JeM (Jaish-e-Mohammed).
(Newsroom staff only edited this story for style from a syndicated feed)
