Pulwama, Gorakhnath Temple terror assaults funded by way of e-com websites, on-line fee providers? FATF cites dangers

The worldwide terror financing watchdog Monetary Motion Activity Drive (FATF) on Tuesday cited the 2019 Pulwama terror assault and the 2022 Gorakhnath Temple incident in India to flag the rising misuse of e-commerce platforms and on-line fee providers for terrorist financing (TF).

In its Complete Replace on Terrorist Financing Dangers, the FATF mentioned that “sure terrorist organisations have been and proceed to obtain monetary and different types of help from a number of nationwide governments” and warned of state sponsorship as a key concern. The report additionally drew consideration to how terrorists are exploiting digital monetary platforms and on-line marketplaces.

“Delegations reported on this pattern by referring to using state sponsorship for TF both as fundraising method or as a part of the monetary administration technique of the sure organisations partaking in terrorist acts,” the FATF famous. “A number of types of help have been reported, together with direct monetary help, logistical and materials help, or the supply of coaching.”

Amazon, PayPal flagged in case research

The FATF highlighted that within the February 2019 Pulwama suicide bombing, which killed 40 Central Reserve Police Drive (CRPF) personnel in Jammu & Kashmir, a key element of the improvised explosive gadget — aluminium powder — was procured utilizing the e-commerce platform Amazon (known as EPOM within the report).

“This materials was used to reinforce the affect of the blast,” the report mentioned.

Following investigations, 19 individuals had been charged beneath India’s Illegal Actions (Prevention) Act, together with seven international nationals. Authorities additionally recovered moveable and immoveable property, together with automobiles and terrorist hideouts.

In its June assertion condemning the April 2025 Pahalgam terror assault, through which 26 individuals had been killed, the FATF had mentioned such assaults “wouldn’t have been potential with out monetary help” and introduced plans for this complete evaluation.

Individually, the FATF cited a case examine of the April 3, 2022 Gorakhnath Temple incident, through which a person influenced by Islamic State in Iraq and the Levant (ISIL) ideology attacked safety personnel. The person was arrested instantly after the tried breach.

In line with Indian authorities, the person used on-line providers to switch Rs 669,841 (USD 7,685) by way of PayPal to international nations to help ISIL, together with 44 worldwide third-party transactions. He additionally acquired Rs 10,323.35 (USD 188) from overseas. VPNs had been used to obscure his IP tackle.

“Because of the suspicious nature of those transactions and the potential for TF, PayPal suspended the accused’s account, thereby stopping additional illicit fund transfers,” the report acknowledged.

Wider misuse of digital platforms

The FATF warned that e-commerce platforms (EPOMs) are getting used not solely to acquire chemical substances and elements for assaults but additionally as a way of worth switch by way of trade-based cash laundering.

“EPOMs can be utilized for fund-moving function impressed by trade-based cash laundering schemes. Traded items can certainly supply disguise to worth being transferred from an confederate to a different member of the community,” the FATF mentioned.

It additionally flagged that peer-to-peer (P2P) fee providers and fintech platforms have turn out to be engaging to terrorists on account of their quick, low-cost transfers and the flexibility to obscure identities by way of pseudonyms or pretend accounts.

“Because the supply of on-line fee providers from Fintech corporations grew considerably during the last 10 years, circumstances of terrorists choosing these providers could be noticed throughout all contexts,” the FATF mentioned.

In line with the report, Europol assesses that such providers are used throughout all varieties of terrorist organisations, together with small cells and lone actors. These platforms are reportedly used for buying navy tools, chemical substances, propaganda materials, and for receiving crowdfunding donations by way of social networks.

The FATF additionally famous that Ethnically or Racially Motivated Terrorism (EoRMT) teams promote merchandise reminiscent of books, music, and clothes by way of P2P methods to boost funds.

It concluded that “on-line fee providers supply much less traceability and transparency in comparison with wire-transfer, making it more durable to obviously establish initiators and recipients of transfers.”

With inputs from PTI