'Attacks Like Pahalgam Can’t Happen Without Money Movement': FATF Slams Terror Financing, Echoes India’s Concerns

New Delhi: The Financial Action Task Force (FATF) condemned the brutal terrorist attack that took place in Pahalgam, Jammu and Kashmir, on April 22, 2025. 

“The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025,” the global body said in a release titled Strengthening Efforts to Combat Terrorist Financing. 

It further said, “This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters.”

India Sees Strategic Window to Push Pakistan Back on Grey List

This significant admission by FATF is being viewed in New Delhi as a critical diplomatic opportunity. It is believed it sets the stage for renewed efforts to expose Pakistan’s continued sheltering of terrorist infrastructure and bring it back under international scrutiny.

Though Pakistan was removed from the FATF grey list in 2022 after years of technical compliance, India has consistently argued that Islamabad’s counter-terror measures remain either untouched or still being nurtured

Indian authorities have reportedly submitted fresh intelligence and a comprehensive dossier to key FATF member countries, part of its 200-jurisdiction Global Network, detailing evidence of ongoing money flow to terror groups.

Shift in FATF’s Tone Seen as Policy Evolution

The FATF’s statement signals more than condemnation it suggests a possible shift in focus from merely reviewing legal frameworks to evaluating the effectiveness of anti-terror financing measures on the ground.

“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," it stated. “Through our mutual evaluations, we have identified gaps that need to be addressed.”

Now, the ball is in FATF’s court, will it back its words with concrete action?