India Defends FATF At UN, Urges Nations To Stop Sheltering Terror Networks And Strengthen Anti-Financing Compliance

India has strongly defended the Financial Action Task Force (FATF), saying attempts to question the global watchdog's credibility are often driven by a fear of scrutiny rather than genuine concerns over its functioning. In a pointed message widely seen as aimed at Pakistan, India also called on countries to stop allowing their territory and financial systems to be misused for terrorism.

India's Permanent Representative to the United Nations, Parvathaneni Harish, made the remarks while speaking at a side event during the 2026 Counter-Terrorism Week on Monday. The event, titled Joining Forces to Counter Terrorism Financing in the Context of Evolving Threats and Emerging Technologies, was jointly organised by the Permanent Missions of India and France to the UN, the Counter-Terrorism Committee Executive Directorate (CTED), the United Nations Office of Counter-Terrorism (UNOCT), and the Global Internet Forum to Counter Terrorism (GIFCT).

A strong message on accountability

Calling the FATF an indispensable pillar of the global anti-money laundering and counter-terrorism financing framework, Harish said its work is technical, evidence-based and based on internationally accepted standards. He said countries unhappy with FATF assessments should address the shortcomings identified instead of attempting to politicise the issue in international forums.

Harish said nations receiving adverse assessments should strengthen domestic enforcement, improve financial transparency and take irreversible action against terror-financing networks. He added that the appropriate response to FATF scrutiny is credible compliance and not attempts to undermine the institution. He also said countries that allow their territory, institutions or financial channels to be used for terrorism must stop exporting instability and fulfil their responsibilities towards international peace and security.

Although Harish did not name Pakistan, the remarks came against the backdrop of Islamabad's previous inclusion on the FATF grey list between 2018 and 2022.

Terror financing is changing, India says

Harish said India was speaking from long experience rather than theory, pointing out that the country has faced cross-border terrorism for decades. He warned that new digital technologies have made terror financing more complex by creating new sources, methods and channels for moving funds.

He said crowdfunding platforms, prepaid financial instruments and digital reward systems such as tokens, stars and points on social media platforms are increasingly becoming part of the financial ecosystem exploited by terrorist organisations. Terrorists, he said, adopt technologies that are inexpensive, fast and lightly regulated, making it essential for governments to build a risk-based regulatory system anchored in FATF standards.

Harish also said terrorist financing risks do not emerge in isolation and have often been backed by state actors, in another apparent reference to Pakistan. At the same time, he cautioned that regulations should not become so restrictive that they undermine financial inclusion, humanitarian work or responsible innovation. According to him, regulatory measures should be proportional while ensuring illicit financial flows are effectively checked.

Highlighting India's efforts, Harish said the country has brought virtual asset service providers under its anti-money laundering framework, tightened verification norms for centralised exchanges and users, and contributed case studies to the FATF's work on mitigating terror financing risks.

India has been a member of the FATF since 2010. Earlier this month, Union Culture Secretary Vivek Aggarwal was appointed Vice-President of the FATF for the July 2026 to June 2027 term.

Harish also referred to India's leadership of the UN Security Council Counter-Terrorism Committee in 2022, when it organised a special meeting in New Delhi and Mumbai on countering the use of new and emerging technologies for terrorist purposes. The meeting resulted in the adoption of the Delhi Declaration, following which India developed non-binding guiding principles focusing on virtual assets and online platforms. Harish said it was satisfying to see those principles continue to shape international efforts.

Addressing the Fourth High-Level Conference on Counter-Terrorism, UN Secretary-General Antonio Guterres said the world is facing growing instability as conflicts continue to trigger energy shocks, inflation, hunger and displacement. He warned that such conditions create fertile ground for terrorism to spread.

Guterres said terrorist groups, including affiliates of Al-Qaida and Da'esh, continue to operate across Africa, South Asia and the Middle East. He also warned that violent extremist ideologies based on xenophobia, racism, intolerance or religion remain a serious domestic threat in many countries.

He said terrorists are increasingly exploiting artificial intelligence, digital platforms, unmanned weapons, criminal networks and other emerging technologies to recruit members, raise funds and plan attacks. However, he added that technology also offers governments valuable tools to detect threats early, disrupt illicit financial flows and better understand pathways to radicalisation.

Calling terrorism a transnational threat, Guterres urged the international community to work together to address the underlying conditions that allow terrorism to flourish, stressing that no country can tackle the challenge alone.