Washington, January 30 – Although Pakistan’s legal framework appears to comply with the 40 recommendations of the Financial Action Task Force (FATF) on paper, serious gaps persist in its implementation at the ground level.
The FATF’s comprehensive 2025 update on terrorist financing risks expresses concern over rapidly evolving methods of terror funding. The report highlights that terrorist groups linked to Pakistan are increasingly turning to fintech platforms instead of traditional banks to evade monitoring.
In an analysis published in ‘The Cipher Brief,’ Washington-based national security and foreign policy analyst Siddhant Kishore noted that at the upcoming FATF plenary and working group meetings scheduled for February 2026 in Mexico City, Pakistan is expected to portray itself once again as a responsible counter-terrorism partner. He wrote, “Away from South Asia’s violence, Pakistan will present its compliance reports, legal amendments, and reform assurances within conference rooms.”
Kishore further explained, “On paper, Pakistan’s financial regulations resemble those of many developing democracies, but the reality is that networks financing and enabling terrorism continuously adapt and remain active. This growing gap between form and function is what Western policymakers must address ahead of FATF’s next review.”
Referring to open-source reporting and documented financial intelligence patterns, Kishore stated that terrorist groups based in Pakistan, such as Jaish-e-Mohammed and Lashkar-e-Taiba, have undergone “modernisation” rather than elimination.
The report points out that these United Nations-designated terrorist organisations exploit humanitarian crises like the Gaza conflict to raise funds for terror activities.
According to Kishore, leaders like Hammad Azhar, son of Jaish chief Masood Azhar, and his brother Talha Al-Saif are using digital wallets under the guise of relief appeals and mosque reconstruction to collect funds.
These networks reportedly collect money through micro-donations and cryptocurrencies, employing dispersed wallet structures and “chain-hopping” between platforms to avoid detection.
The report indicates that the raised funds are allegedly used to strengthen terrorist infrastructure, including the establishment of over 300 mosques and rebuilding sites damaged during India’s 2025 ‘Operation Sindoor,’ many of which have links to Lashkar training facilities.
It emphasises that at the upcoming FATF meeting in Mexico, delegations from the United States and the European Union should pressure Pakistan for a “results-based assessment.” This should focus on sustained investigations, verified asset seizures, and the actual dismantling of networks facilitating terrorist financing.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment