FATF Warns of E-Commerce Misuse in Global Terror Financing

The FATF has highlighted how e-commerce and online payment services are exploited for terror financing. It points to cases like the Pulwama and Gorakhnath Temple incidents. Terrorists exploit these platforms for fundraising, leveraging state sponsorship and online anonymity to obscure financial transfers.

The Financial Action Task Force (FATF), a global watchdog for terror financing, has issued a warning that terrorist organizations are misusing e-commerce platforms and online payment services to finance their activities. The report highlights the February 2019 Pulwama attack and the 2022 Gorakhnath Temple incident as examples of such exploitation.

The FATF's 'Comprehensive Update on Terrorist Financing Risks' details state sponsorship's role in terror financing, citing multiple national governments allegedly supporting certain terrorist organizations financially and logistically. Various methods are employed, including direct financial aid, logistical support, and training provision.

Through case studies, the FATF describes how terrorists are acquiring materials for attacks via e-commerce platforms, and utilizing online payment services to facilitate fund transfers, often bypassing traditional traceability mechanisms. These platforms provide anonymity that complicates identifying the parties involved in financial transactions.

(With inputs from agencies.)