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A new report by the FATF called out Pakistan for violating international norms by mis-declaring dual-use goods to aid the country’s ballistic missile development.
The FATF increased scrutiny on Pakistan’s state-sponsored terrorism after the Pahalgam attack. (Reuters/File Photo)
A new report by the Financial Action Task Force (FATF) has called out Pakistan for violating international norms by engaging in ballistic missile development, citing a shipment that was seized by Indian customs officials in 2020.
In its latest report on ‘Complex Proliferation Financing and Sanctions Evasion Schemes’, the FATF noted that dual-use goods, including equipment critical for ballistic missile technology, were mis-declared in export documents and linked directly to Pakistan’s National Development Complex.
“In 2020, Indian custom authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment’s dual-use items. Indian investigators certified the items for shipment to be ‘Autoclaves’, which are used for sensitive high energy material and chemical coating of missile motors.”
“The sensitive items are included in dual-use export control lists of the Missile Technology Control Regime, India, and other jurisdictions,” it added.
FATF’s Condemnation Of Pahalgam Attack
The latest report came after FATF increased scrutiny on state-sponsored terrorism in Pakistan, following the April 22 terror attack in Jammu and Kashmir’s Pahalgam, which left 26 tourists dead.
Earlier this month, the FATF acknowledged and condemned the brutal terrorist attack in Pahalgam and said it could not have occurred without the money and the means to move funds between terrorist supporters.
“The FATF notes with grave concern and condemns the brutal terrorist attack in Pahalgam on 22 April 2025. This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters,” the global watchdog said in a public release.
India To Push For Sanctions
This stark admission by the FATF apparently came amid diplomatic efforts by New Delhi to highlight the resurgence of cross-border terrorism and expose the financial networks behind it.
Top Indian officials have reportedly shared intelligence with key member countries in the FATF’s Global Network — which includes over 200 jurisdictions — in a bid to build consensus for grey-listing Pakistan once again.
A report by News18‘s sister publication Moneycontrol said Pakistan could be placed back on the FATF’s “grey list” for the fourth time in the coming weeks due to its continued failure to curb terror financing, citing sources familiar with the matter.
India is likely to use this FATF disclosure in its dossier to push for Pakistan’s return to the FATF grey list, sources told news agency PTI. The upcoming Asia Pacific Group meeting in August and the FATF plenary in October may see renewed calls for sanctions or monitoring.
At a FATF plenary held in France’s Strasbourg last week, India reportedly flagged Pakistan’s terror networks and the support they receive from the government.
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international…Read More
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international… Read More
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