India's Permanent Representative to the United Nations, P Harish, on Monday mounted a firm defence of the Financial Action Task Force (FATF) at a UN event in New York, saying attempts to undermine the body's credibility 'often reflect fear of scrutiny rather than genuine process-related concerns.' The remarks came during UN Counter-Terrorism Week and were widely understood as a pointed response to Pakistan's longstanding campaign against the global anti-terror financing watchdog.

India's Stand at the UN

Speaking at an event co-sponsored by India and France on 'Joining Forces to Counter Terrorism Financing in the Context of Evolving Threats and Emerging Technologies,' Harish described FATF as 'an indispensable pillar of the global counterterrorism financing and anti-money laundering architecture.' While he stopped short of naming Pakistan directly, the diplomatic subtext was unmistakable.

'Our history shows that critical terrorist financing risks have not emerged anonymously,' he said. 'They have been sponsored, including by some state actors.' He added that the answer to FATF scrutiny 'is not politicised activism in UN forums, but credible compliance.'

The Pakistan Context

Pakistan has repeatedly accused FATF of being politically weaponised, particularly after it was placed on the body's 'grey list' — a designation that subjects countries to increased monitoring for deficiencies in combating terror financing and money laundering. Despite its public opposition, Pakistan eventually agreed, under sustained international pressure and the threat of financial strictures, to meet FATF's conditions to be removed from the grey list, though it continues to be monitored by FATF and its affiliate, the Asia/Pacific Group on Money Laundering (APG).

Harish's message to such states was unambiguous: 'Countries facing adverse assessments should address the deficiencies identified, strengthen domestic enforcement, improve financial transparency, and demonstrate irreversible action against terror financing networks.'

India's Own Counterterrorism Financing Record

'For decades now, my country, India, has confronted cross-border terrorism, and new digital technologies are only making the sources, the methods, and channels used for the flow of assets more complex,' Harish said. He outlined several steps India has taken in line with FATF standards, including bringing virtual asset service providers within its anti-money laundering framework and tightening verification requirements for centralised exchanges and users.

India has also contributed case studies to FATF updates and shared best practices to mitigate terror financing risks, he noted, underscoring the country's cooperative posture with the body.

What FATF Does and Why It Matters

The 40-member FATF leads global action against terrorism funding, money laundering linked to drug trafficking and illegal arms trade, and cyber fraud. It sets international standards for preventive action and monitors countries to ensure they do not become havens for illicit financial activity. Its technical assessments — described by Harish as 'evidence-based and rooted in internationally accepted standards' — carry significant economic consequences for listed nations, including restricted access to international financial systems.

What Comes Next

India's public defence of FATF at the UN signals a broader diplomatic strategy: using multilateral forums to hold accountable states that allegedly sponsor cross-border terrorism while simultaneously showcasing New Delhi's own compliance credentials. As emerging technologies continue to complicate terror financing channels, pressure on nations still under FATF monitoring — including Pakistan via the APG — is unlikely to ease.