Highlighting the increasing use of online platforms to facilitate terrorism, the Financial Action Task Force (FATF), a global watchdog tracking terror financing, has revealed that the explosive material used in the 2019 Pulwama terror attack, which killed 40 CRPF personnel, was purchased through the e-commerce platform Amazon.

In its latest 131-page report titled “Comprehensive Update on Terrorist Financing Risk”, the FATF also cited the 2022 Gorakhnath temple incident, in which an attacker struck a security personnel with a sharp-edged weapon, seriously injuring him, as another example of such misuse.

Using both cases as key illustrations, the global terror financing watchdog warned that if e-commerce and digital payment services fall into the wrong hands, they can become enablers of terrorism.

The FATF stated that terrorist organisations are now supplementing traditional funding methods with digital tools such as online payments, gaming platforms, social media, and e-commerce websites. It urged Governments and digital service providers across the world to take concrete steps to prevent such misuse.

The global watchdog cautioned that these platforms are fast becoming a new and powerful channel for terrorist operations. It also highlighted growing challenges in understanding and preventing terror financing and outlined how the methods of terror funding are constantly evolving.

While condemning the April 2025 Pahalgam terror attack, in which 26 people were killed, the FATF in June had said it would come out with a “comprehensive analysis of terrorist financing”, compiling cases provided by its global network consisting of 200 jurisdictions.

Giving the case study of use of e-commerce platforms for procurement of materials for terrorist attack in India, the FATF said a key component of the improvised explosive device used in the attack — aluminium powder — was procured through the EPOM Amazon. This material was used to enhance the impact of the blast.

Earlier, in February 2019, a suicide bombing targeting a convoy of Indian Security forces in Pulwama in Jammu and Kashmir had resulted in the death of 40 soldiers. Indian authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM). As a result of the investigation, 19 individuals were charged under relevant provisions of the Unlawful Activities (Prevention) Act, including sections related to TF.

Among those charged were seven foreign nationals, including the suicide bomber. LEAs also recovered moveable and immovable assets connected to the attack, such as vehicles and terrorist hideouts.

Indian authorities have repeatedly highlighted Pakistan’s persistent support for terrorism and its funnelling of multilateral funds for arms procurement. It has consistently held that Pakistan has provided a safe haven to designated terrorists and such action warrants that the country be put in the “grey list” of the FATF.

According to the FATF report, many countries still lack the capacity to effectively detect and curb terror financing. It has warned that if these shortcomings are not addressed in time, terrorist organisations will continue to exploit existing loopholes.

The report explains how terror groups are increasingly using the international financial system to sustain their operations and carry out attacks. It also notes that strategies related to terrorist financing are not uniform across regions. Instead, different groups adopt different methods based on local contexts and circumstances.

The FATF revealed that online shopping platforms are increasingly being misused for money laundering and terrorist groups are using them as part of schemes to hide the true origin of funds. The report said that one common method involved purchasing goods online and shipping them to an associate in another country. These items are then sold locally, and the money earned is used to fund terrorist activities. The report also highlighted a more serious concern — that some terrorist organisations continue to receive direct or indirect support from certain countries. Noting that such backing was still ongoing in some countries, the FATF said this support also includes financial aid, weapons, training, and other resources.