FATF to Examine State-Sponsored Terrorism: Pakistan-Based Entities Under Global Lens

The Financial Action Task Force ( FATF ), the global watchdog for money laundering and terror financing, is expected to deliberate on the issue of state sponsorship of terrorism during its ongoing meetings in Paris. The session, which began on October 20, 2025, will continue till October 24 and is likely to feature detailed discussions on terror-financing networks operating through Pakistan-based organisations and their proxies. The move comes amid growing global concern about the role of state-supported entities in facilitating cross-border terrorism.

FATF’s Expanded Focus on State Sponsorship

For the first time, FATF’s latest “Comprehensive Update on Terrorist Financing Risks” report has acknowledged state sponsorship as a major threat to international peace and financial stability. The report recognises that certain countries, by offering financial, logistical, or material support to extremist groups, contribute to sustaining terrorist activities. This recognition has provided a new framework for assessing the risk of state involvement in terror financing during the FATF’s new round of mutual evaluations.

Pakistan’s Presence in the Spotlight

Sources within law-enforcement agencies suggest that Pakistan will be a central point of discussion during the FATF Plenary. India has consistently raised the issue of Pakistan’s continued support for banned outfits such as Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), both of which have been sanctioned by the United Nations. Despite being on global watchlists, these groups reportedly continue to operate through front organisations, securing funds and rebuilding infrastructure under the guise of humanitarian work.

Rebuilding of LeT Headquarters

Indian intelligence agencies have recently provided inputs revealing that Lashkar-e-Taiba, operating under its charitable front Jamaat-ud-Dawa, has raised funds both online and offline to rebuild its headquarters in Muridke. The site was destroyed by the Indian Air Force during Operation Sindoor on May 7, 2025. Following this, the Pakistani government reportedly allocated four crore Pakistani rupees to the LeT for the reconstruction of its base, known as Markaz Taiba. The total reconstruction cost is estimated to exceed fifteen crore rupees.

Fundraising Under the Guise of Relief Work

Investigations suggest that the LeT mobilised public donations under the pretext of “flood relief campaigns” to rebuild its terror infrastructure. Such tactics have long been used by banned organisations in Pakistan to secure funds while evading international scrutiny. This development strengthens India’s long-standing claim that Pakistan continues to shelter and assist terrorist groups despite global sanctions and commitments to counter terrorism financing .