In a stark warning, the FATF’s 2025 terrorist financing update flags Pakistan’s persistent failures in enforcing its 40 key recommendations. Paper reforms abound, but on-the-ground execution lags, enabling terror groups to reinvent themselves through cutting-edge fintech evasion tactics.
As detailed by security expert Siddhant Kishore in ‘The Cipher Brief,’ Pakistan gears up for its next FATF showcase in Mexico City next February. Amid boardroom assurances of progress, the reality back home tells a different story: active networks funding violence across South Asia.
UN-sanctioned entities JeM and LeT exemplify this adaptation. No eradication in sight – instead, a high-tech overhaul. They capitalize on global crises like Gaza, masking fundraisers as aid for mosques and relief.
Masood Azhar’s relatives, including son Hammad and brother Talha al-Saif, lead the charge with digital wallets flooded by micro-gifts and crypto. Sophisticated tactics like wallet fragmentation and cross-platform transfers keep trackers at bay.
Reinvested funds fortify infrastructure: 300+ mosques erected, plus reconstructions of Operation Sindoor-damaged sites from India’s 2025 strikes – prime LeT training grounds.
Ahead of FATF’s Mexico plenary, the report insists on a shift to outcome-driven evaluations. US and EU must champion relentless investigations, proven seizures, and full network takedowns. Bridging the intent-execution divide is crucial to neutralizing these persistent dangers.