The FATF warns that terrorist fundraising methods are becoming wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital and funds are being raised through laptops and smartphones. It cites several incidents, including the Pulwama and Gorakhnath attacks. A new report has warned that terrorist fundraising methods have changed, and that the previous reliance on secret couriers and hawala networks has changed, and funds are now being raised through laptops and smartphones. The financial action task force (FATF), the global terror finance watchdog, has released this shocking report. The FATF released the report on terrorism financing risks on Tuesday. The report details how terrorist groups use everyday wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital tools such as e-commerce platforms, online marketplaces, and fintech services to fund, plan, and execute their attacks. Citing terrorist attacks in india, including the 2019 Pulwama suicide bombing and the 2022 Gorakhnath temple attack, the report highlights how terrorists have misused wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital platforms. The Pulwama suicide attack, one of the worst terrorist attacks on indian soil in recent history, killed 40 CRPF personnel. According to the FATF report, the aluminum powder used to increase the impact of the explosives used in the attack was purchased by the terrorists through the e-commerce platform Amazon. This shows how terrorist networks have seamlessly integrated into online business environments. “E-commerce Platforms and Online Marketplaces (EPOMs) can be used to move funds, inspired by trade-based money laundering schemes. The traded goods can actually be used to disguise the transfer of value from one partner to another network member. In such a scheme, the first person would buy goods, send them to his partner through an EPOM, who would then sell the goods in another jurisdiction and use the profits to finance terrorism,” the FATF said. After the Pulwama attack, indian authorities booked 19 people, including seven foreigners, under the Unlawful Activities (Prevention) Act (UAPA). Several movable and immovable assets, including vehicles and terrorist hideouts, were seized during the investigation, confirming the support of a large network for the attack. india has repeatedly accused pakistan of not only providing ideological and logistical support to such terrorist organisations, but also providing safe havens to terrorists internationally. The FATF did not specifically mention pakistan in its report. But it has warned of a trend of state support for terrorism.
“Some organisations involved in terrorist activities have indicated that they receive state support as a means of raising funds. Support in many forms, including direct financial assistance, provision of logistics and supplies, and weapons training, has been reported,” the report said. The report does not stop with large-scale terrorist plots. The report also describes the ideological incitement to violence using online payment services and VPNs. It also points to individual attackers in this regard. One such case is the 2022 attack on the Gorakhnath temple in Uttar Pradesh, where a person, brainwashed by the ideology of the Islamic State (ISIL), went to attack security forces.
A detailed financial investigation revealed that the accused used PayPal and international financial transaction channels to transfer about Rs. 6.69 lakh (US$7,685) to foreign accounts in support of ISIL. To hide his wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital footprint, he allegedly used VPN services, with VPN fees being paid directly from his bank account. The total value of the money is Rs. 6,69,841 (USD 7,736). These transactions were made over time and were sent to foreign accounts associated with ISIL supporters. The investigation also revealed that instead of the funds he sent, he received Rs. 10,323.35 (USD 188) from a foreign account through PayPal. His PayPal app and the associated email records played a key role in tracing the financial transaction. As a result of the investigation, the accused’s PayPal account was frozen.
The illegally raised money was sent to several individuals abroad. They were identified as supporters of ISIL. It is alleged that the funds could have been used to support terrorist activities abroad. This highlights the seriousness of cross-border terrorist fundraising. The FATF report clearly shows the extent to which terror financiers have transformed themselves into the wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital world. The report shows that terrorists use a variety of methods, from widely used banking transactions to payment processors, cryptocurrencies, and peer-to-peer (P2P) systems.
“The significant growth in the offer of online payment services by fintech companies over the past 10 years has led to terrorists using these services in all contexts, especially since they offer multiple ways to obtain funds,” the report said. Fintech apps often allow transactions to be made through pseudonyms or fake accounts, leaving little trace of the transactions. “These payment services provide terrorist organizations with a low-cost, fast money transfer solution,” the report explained. Terrorist groups are now trying to slowly impose their ideologies through books, music, and clothing, which they sell to their supporters online. This practice is particularly common among ethnically motivated terrorist (EoRMT) groups, the report noted.
“Such online payment services can also be used to make donations to large organisations. In particular, some payment methods are integrated into content hosting services. This can be used by terrorist organisations to seek donors, launch crowdfunding campaigns and receive funds through online payment facilities,” the FATF warned. The report also points out that it is difficult to clearly identify the sender and receiver of money in such transactions.
India has long alleged that pakistan finances and supports terrorism and provides military equipment. In this context, the FATF’s mention of terrorist incidents in india such as Pulwama and Gorakhnath in its report confirms India’s concerns. It also underlines the urgency of international cooperation to deal with the growing threats. Last June, the FATF issued its condemnation statement following the killing of 26 people in a terrorist attack in Pahalgam, Jammu and Kashmir. It stressed that this would not be possible without financial support for terrorists. The latest report has amply substantiated the point made by the FATF at the time.
Citing terrorist attacks in india, including the 2019 Pulwama suicide bombing and the 2022 Gorakhnath temple attack, the report highlights how terrorists have misused wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital platforms. The Pulwama suicide attack, one of the worst terrorist attacks on indian soil in recent history, killed 40 CRPF personnel. According to the FATF report, the aluminum powder used to increase the impact of the explosives used in the attack was purchased by the terrorists through the e-commerce platform Amazon. This shows how terrorist networks have seamlessly integrated into online business environments. “E-commerce Platforms and Online Marketplaces (EPOMs) can be used to move funds, inspired by trade-based money laundering schemes. The traded goods can actually be used to disguise the transfer of value from one partner to another network member. In such a scheme, the first person would buy goods, send them to his partner through an EPOM, who would then sell the goods in another jurisdiction and use the profits to finance terrorism,” the FATF said. After the Pulwama attack, indian authorities booked 19 people, including seven foreigners, under the Unlawful Activities (Prevention) Act (UAPA). Several movable and immovable assets, including vehicles and terrorist hideouts, were seized during the investigation, confirming the support of a large network for the attack. india has repeatedly accused pakistan of not only providing ideological and logistical support to such terrorist organisations, but also providing safe havens to terrorists internationally. The FATF did not specifically mention pakistan in its report. But it has warned of a trend of state support for terrorism.
click and follow Indiaherald WhatsApp channel