'Could not occur without money': FATF condemns Pahalgam terror attack, boosts India’s bid to grey-list Pakistan

Then Financial Action Task Force (FATF) in an unprecedented statement has for the first time acknowledged and condemned the brutal terrorist attack in Jammu and Kashmir’s Pahalgam on April 22, 2025.

According to a News 18 report, strategic and geopolitical analysts view this recent declaration as a possible opening for India to renew its efforts to have Pakistan reinstated on the FATF grey list.

“The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025,” News 18 quoted the global watchdog as saying in a public release titled – ‘Strengthening Efforts to Combat Terrorist Financing’.

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

This stark acknowledgment by the FATF appears to coincide with renewed diplomatic efforts by New Delhi to spotlight the resurgence of cross-border terrorism and expose the financial networks sustaining it.

Senior Indian officials have reportedly shared intelligence with key member states of the FATF’s Global Network, encompassing over 200 jurisdictions, in an attempt to build consensus for re-adding Pakistan to the grey list.

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Although Pakistan was removed from the grey list in 2022 following years of compliance measures, Indian intelligence and diplomatic circles maintain that the core infrastructure supporting terrorism remains intact or is being quietly sustained, hidden behind temporary legal façades.

The Pahalgam attack, along with a series of recent incidents in Jammu and Kashmir, is being presented as evidence that terror financing channels remain operational.

The FATF, 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.

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“That is how, through our mutual evaluations, we have identified gaps that need to be addressed," the statement further said.

New Delhi views this shifting focus,  from legal frameworks to actual on-ground impact, as a critical opportunity.

According to News 18, citing senior officials, India has prepared a new dossier detailing fund flows, tech-enabled money laundering, and the misuse of virtual currencies by terror proxies.

This dossier is set to be presented at upcoming FATF sessions and other international forums. In fact, India has already put forward its case during the recently concluded FATF meetings, added the report.

The FATF also acknowledged the changing nature of terrorist financing, saying“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.

Pakistan-backed terrorists killed 26 people, mostly tourists, in Pahalgam On April 22.

In retaliation, India launched precision strikes under ‘Operation Sindoor’ on May 7, targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).

Following India’s operation, Pakistan attempted retaliatory strikes on Indian military bases on May 8, 9, and 10. In response, Indian forces carried out strong counter-attacks against several Pakistani military installations.

After four days of intense cross-border drone and missile exchanges, both nations reached an understanding on May 10 to de-escalate and end the conflict.

With inputs from agencies