**Financial Action Task Force (FATF) **

• Intergovernmental body established in 1989 by G7.
• Aims to combat money laundering, terrorist financing, and proliferation of WMDs.

Headquarters: Paris, France

Members: 39 (including India, since 2010) Associated bodies: UN, IMF, World Bank, INTERPOL, APG (Asia-Pacific Group)
FATF Report: Tech-Enabled Terror Financing

1. Emerging Threats:

   • Terror groups exploit e-commerce (Amazon), digital payments (PayPal), VPNs, and online gaming for fundraising/material procurement.
   • Case Studies:
     • Pulwama 2019: Aluminum powder for IED bought via Amazon EPOM.
     • Gorakhnath Temple 2022: Attacker transferred ₹6.69 lakh via PayPal to ISIL using VPN.
   • New Tactics: Crowdfunding, micro-donations, petty crimes, and diversion of humanitarian aid.

2. Global Gaps:

   • 69% of countries have major deficiencies in investigating terror financing (TF).
   • Weaknesses: Cross-border intelligence sharing, risk-based regulations.

3. FATF Recommendations:

   • Strengthen financial surveillance of e-commerce/digital payments.
   • Adopt risk-based frameworks for NGOs in conflict zones.
   • Enhance public-private partnerships for real-time data sharing Previous UPSC Questions Mains 2021: "Discuss emerging challenges of cyber-terrorism." Mains 2019: "How does money laundering threaten India’s security?"