FATF report highlights serious terror financing threats in India

India is facing significant threats of terrorist financing, primarily from ISIS and Al Qaeda-affiliated groups operating in Jammu & Kashmir, according to a recent report by the Financial Action Task Force (FATF). Released on Thursday, the report underscores the varied nature of terror threats facing the country, with a strong emphasis on the funding activities of these extremist factions.

The Paris-based FATF noted, “India’s primary sources of money laundering stem from illicit activities conducted within its borders.” It flagged a “disparate” range of terror threats, specifically highlighting the influence of ISIS and Al Qaeda-linked groups in Jammu & Kashmir.

The report also evaluated India’s performance in combating money laundering, rating it as “moderately” effective. It highlighted the challenges faced by Indian courts, including significant backlogs that delay many cases. The FATF pointed out that recent constitutional challenges have impacted money laundering convictions, with the Enforcement Directorate’s €9.3 billion asset seizures translating to less than $5 million in actual confiscations following convictions.

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