Call Us Now

+91 9606900005 / 04

For Enquiry

legacyiasacademy@gmail.com

Terror attack accused in India used online payment services

Key Findings from FATF’s July 2025 Report

Report TitleComprehensive Update on Terrorist Financing Risks
Publisher: Financial Action Task Force (FATF)
Context: Highlights evolving methods used by terrorists globally, with India cited in two major case studies.

Case 1: Gorakhnath Temple Attack (April 3, 2022) – Lone Wolf Radicalisation

  • Nature of Attack: A “lone actor” radicalised by ISIL ideology attempted to attack security personnel at the Gorakhnath Temple, UP.
  • Modus Operandi:
    • Fund transfers worth ₹6,69,841 via PayPal to foreign entities allegedly supporting ISIL.
    • 10,323.35 received from foreign source—indicative of reverse funding.
    • Used VPNs for online communication, calls, and downloads to mask digital identity.
    • Third-party international transactions used to obscure traceability.
  • Investigation & Charges:
    • Handled by UP ATS.
    • Accused charged under the Unlawful Activities (Prevention) Act (UAPA).

Case 2: Pulwama Attack (February 14, 2019) – E-Commerce Enabled Logistics

  • Attack Details:
    • Suicide bombing on a CRPF convoy in Pulwama, J&K killing 40 personnel.
    • Orchestrated by Pakistan-based Jaish-e-Mohammed.
  • Use of E-Commerce:
    • Aluminium powder, a component of the IED, was purchased via Amazon.
    • Used to enhance blast intensity.
    • Procurement traced through digital transaction logs.
  • Aftermath:
    • 19 individuals were charged under UAPA, including 7 foreign nationals and the suicide bomber.

FATF’s Broader Concerns on EPOMs & Digital Platforms

  • EPOMs: E-commerce Platforms & Online Marketplaces are becoming prime tools for terrorist procurement.
  • Money Laundering & Terror Financing (ML/TF) Risks:
    • Criminals pose as fraudulent sellers/buyers.
    • Employ trade-based techniques like over/under invoicing to transfer value covertly.
    • Use EPOMs as fronts for illegal activity, including:
      • Purchase of restricted components
      • Disguised fund transfers
      • Virtual storefronts aiding cross-border logistics

Policy Implications for India

  • Digital Ecosystem Gaps:
    • Insufficient regulation over cross-border PayPal flows and cryptic VPN use.
    • Lack of real-time data sharing between fintech and intelligence bodies.
  • Needed Reforms:
    • Strengthen FEMA & PMLA enforcement in digital payment corridors.
    • Mandate KYC across all EPOMs, including global platforms operating in India.
    • Enforce traceability mandates for VPNs and encrypted communications under the IT Act.
    • Public-private coordination between e-commerce firms, fintech, and counter-terror agencies.

India’s Regulatory Landscape (As of July 2025)

Tool/PlatformCurrent StatusRegulatory Gap
PayPal & Intl WalletsSubject to FEMA norms & RBI monitoringPoor traceability for foreign P2P transactions
VPN ServicesUsers not required to register with govt.High anonymity = misuse risk
E-commerce (Amazon)GST, KYC enforced for sellersNo vetting of component-level product buyers
CryptocurrencyPartially regulated via FIU and tax reportingLargely opaque—used for cross-border fund flows

Key Takeaways

  •  Terrorists are shifting from hawala to hyperlinks—digital traceability is now the new battlefield.
  •  Online anonymity tools like VPNs and international wallets are increasingly weaponised.
  •  India must create a centralised anti-terror-fintech task force involving MEITY, MHA, RBI, and global partners.
  •  Greater FATF compliance and cyber-regulatory overhauls are essential to secure India’s digital ecosystem.

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
Categories