The Financial Action Task Force (FATF), the global watchdog on money laundering and terror financing, has revealed that Pakistan-based terrorist groups Jaish-e-Mohammed (JeM) and Lashkar-e-Tayyiba (LeT) are using fake non-profit organisations (NPOs) to raise and move funds for their operations.
In its latest report titled Comprehensive Update on Terrorist Financing Risks, FATF detailed how these organisations abuse humanitarian assistance programmes by operating under false charitable pretexts. The fundraising methods include social media campaigns, direct messaging, online platforms, offline events, and crowdfunding. The funds are channelled through banks, financial institutions, unlicensed money transfer services, and are often converted into cash or logistical assets.
The report highlights how both JeM and LeT—groups with a history of involvement in major terrorist attacks like the 2001 Indian Parliament attack, the 2008 Mumbai attacks, and the 2019 Pulwama bombing—continue to evade global oversight by exploiting the financial system. In East Asia, these groups were found to have used sham NPOs to divert humanitarian donations for operational purposes.
For the first time, FATF has indirectly referenced the concept of state-sponsored terrorism, a term often used by India to describe Pakistan’s alleged role in financing and supporting terrorism. A senior official familiar with the matter said this reinforces India’s long-standing position that Pakistan enables terrorism as part of state policy.
FATF also cited earlier instances such as the procurement of explosive materials via e-commerce platforms, as seen in the February 2019 Pulwama attack where aluminium powder was bought online. The report further noted rare cases where gold and jewellery are used to store funds, sometimes hidden by family members of terrorists.
The agency condemned the April 22, 2025, terror attack in Pahalgam, Jammu & Kashmir, in which 26 tourists were killed. The FATF continues to monitor such incidents closely and is expected to use the findings in its ongoing evaluation of Pakistan’s compliance with international counter-terrorism financing obligations.
India has renewed its push to re-list Pakistan on the FATF grey list, citing continued support to proscribed terror groups despite international scrutiny. The report serves as a significant step in exposing how terrorist financing networks continue to evolve and exploit global systems, posing a serious threat to peace and stability.
