India backs FATF at UN, says critics fear scrutiny on terror financing

Unitednations,UPDATED: Jun 30, 2026 10:44 IST

India on Monday strongly backed the Financial Action Task Force (FATF), saying attempts by some countries to question its credibility show a “fear of scrutiny” rather than genuine concerns about process. It also said states must ensure that their territory, institutions and financial channels are not misused for terrorism, in an apparent reference to Pakistan.

Speaking at a 2026 Counter-Terrorism Week side event at the United Nations, India’s Permanent Representative to the UN, Parvathaneni Harish, said new digital tools were making terror financing more complex and that the response must be rooted in FATF standards. At the wider conference, UN Secretary-General Antonio Guterres also warned that terrorist groups were adapting quickly to new technologies and said no country could tackle the threat alone.

Harish was addressing the event titled ‘Joining Forces to Counter Terrorism Financing in the Context of Evolving Threats and Emerging Technologies’, co-organised by the Permanent Missions of India and France to the UN, the Counter-Terrorism Committee Executive Directorate, the UN Office of Counter-Terrorism, and the Global Internet Forum to Counter Terrorism. “The FATF remains an indispensable pillar of the global counterterrorism financing and anti-money laundering architecture. Its work is technical, evidence-based and rooted in internationally accepted standards. Attempts to question its credibility often reflect fear of scrutiny rather than genuine process-related concerns,” he said.

He said countries facing adverse assessments should address the gaps identified, strengthen domestic enforcement, improve financial transparency and show irreversible action against terror-financing networks. “The answer to FATF scrutiny is not politicised activism in UN forums but credible compliance. States that allow their territory, institutions or financial channels to be misused for terrorism must stop exporting instability and start fulfilling their obligations towards international peace and security,” Harish said. Pakistan had been on the FATF grey list since 2018 and was removed from it in 2022.

Harish said India was not speaking about counter-terrorism in the abstract. “For decades now, my country, India, has confronted cross-border terrorism, and new digital technologies are only making the sources, the methods, and channels used for the flow of assets more complex,” he said. India has been a member of the FATF since 2010. Earlier this month, Union Culture Secretary Vivek Aggarwal was appointed Vice-President of the FATF for July 2026 to June 2027.

Referring to changing methods of terror financing, Harish said crowdfunding platforms and prepaid instruments had become central to the funding infrastructure of global terrorist operations. “Crowdfunding from radicalised individuals for terrorist financing and use of tokens, stars and points in social media platforms by terrorists to store and transfer their value are real issues of deep concern for all of us,” he said. He added, “Terrorists are technology neutral, and they adopt whatever is cheap, fast, lightly-regulated, and whatever works for them.” Harish said, “Our response must be a risk-based architecture anchored in the FATF standards,” and added that critical terrorist financing risks had not emerged anonymously. “They have been sponsored, including by some state actors,” he said.

He said regulation should not hurt legitimate activity. “Steps towards financial inclusion, humanitarian action and responsible innovation are only undermined when illicit flows go unchecked. Therefore, the regulatory outcome should be proportional, not prohibitive,” he said. Harish said India had made an “honest effort” to match its words with action, adding: “We have brought virtual asset service providers within our anti-money laundering framework. We have tightened verification requirements for centralised exchanges and users, and we have contributed case studies to the FATF’s updates and best practices to mitigate terror financing risks.”

Harish also referred to India’s work at the UN Security Council Counter-Terrorism Committee in 2022, when it chaired a Special Meeting in New Delhi and Mumbai on ‘Countering the use of new and emerging technologies for terrorist purposes’. The meeting led to the adoption of the Delhi Declaration on the issue. He said India had focused the committee’s attention on two frontiers, virtual assets and online platforms, and developed non-binding guiding principles under the declaration. “It is a matter of great satisfaction that its pillars are being taken forward and the world is gaining from it,” he said.

At the Fourth High-Level Conference on Counter-Terrorism, Guterres said the world was facing acute instability, with conflicts causing energy shocks, inflation and hunger, while displacing millions and pushing many more into economic hardship. “These conditions – of want, of fragility, of mistrust – are ideal circumstances for terror to thrive. From Africa to South Asia, and across the Middle East, affiliates of Al-Qaida and Da’esh and other terrorist groups persist,” he said. He warned that violent extremist narratives based on xenophobia, racism and other forms of intolerance, or in the name of religion or belief, posed deadly domestic threats in many countries.

Guterres said terrorists were adapting fast. “New technologies make it easier for them to finance and recruit. Criminal networks speed the flow of cash and weapons, now including deadly drones,” he said. He added that terrorists had grown adept at exploiting artificial intelligence, digital platforms and unmanned weapons, even as technology could also help detect threats early, track illicit assets and understand pathways to radicalisation. He called for greater international cooperation, stressing that terrorism is a transnational threat that no nation can address on its own. Overall, India used the UN platform to defend FATF scrutiny, press for credible action against terror financing, and underline the risks posed by emerging technologies as the wider UN meeting called for a coordinated global response.

With PTI Inputs

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