FATF Meet: India To Take On Pakistan Over Masood Azhar, JeM’s Digital Funding Network

By: News18 World

Published: 28 October 2026

FATF Meet: India To Take On Pakistan Over Masood Azhar, JeM’s Digital Funding Network

Photo / Illustration: Haldwani Times News Desk

India is set to confront Pakistan at the Financial Action Task Force (FATF) plenary in Paris from October 28 to 30 over Islamabad’s failure to take verifiable action against United Nations-designated Jaish-e-Mohammed (JeM) chief Masood Azhar, with the Taliban regime’s rejection of Pakistan’s claim that the terrorist leader is in Afghanistan emerging as a key point of contention. New Delhi’s case centres on the contradiction between Islamabad’s long-standing assertion that Azhar fled to Afghanistan in 2019 and the Taliban government’s denial that the JeM chief is present on Afghan soil. Indian officials believe the denial undermines Pakistan’s explanation for its failure to arrest him, people familiar with the matter have said. The diplomatic push comes as Pakistan seeks to demonstrate its compliance with international obligations on countering terrorist financing, after being removed from the FATF’s grey list in October 2022. India has argued that Islamabad’s enforcement against UN-designated terrorist organisations and their leaders remains uneven, despite the completion of action plans that included measures against JeM and Lashkar-e-Taiba (LeT). The FATF plenary will bring together representatives from across its global network to discuss money laundering, terrorist financing and other threats to the international financial system. Pakistan’s efforts to disrupt terrorist financing and enforce sanctions against designated individuals are expected to come under scrutiny. Pakistan’s Federal Investigation Agency (FIA) has included Azhar in its 2026 Red Book of most-wanted terrorists and lists a reward of PKR 7 million, or around Rs 70 lakh, for information leading to his arrest or conviction. The move has drawn criticism from India, which has questioned whether the announcement reflects any substantive effort to locate and prosecute the JeM chief. In September, Ministry of External Affairs spokesperson Randhir Jaiswal described Pakistan’s bounty announcement as a “phony" move and said Islamabad needed to take actual action against terrorism rather than make announcements that New Delhi considers inconsequential. Pakistan, meanwhile, has defended its actions. Its Foreign Office said the FIA’s listing reflected the country’s commitment to enforcing domestic and international law. The Taliban’s denial has added a new dimension to the dispute. Pakistan has maintained that Azhar left the country and crossed into Afghanistan in 2019. However, Taliban spokesperson Zia Ahmad Thakal said in September that Azhar was not in Afghanistan and that Pakistan had not formally communicated his presence to Kabul. The Taliban has also reiterated its stated position that Afghan territory should not be used to launch attacks against other countries. Azhar, who was released from Indian custody in December 1999 in exchange for passengers and crew aboard hijacked Indian Airlines flight IC-814, founded JeM in 2000. The group has been linked to several major attacks in India, including the December 2001 Parliament attack, the 2016 Pathankot airbase attack and the 2019 Pulwama bombing. He was designated a global terrorist by the UN Security Council in May 2019. The scrutiny of Pakistan’s counter-terror financing measures extends beyond Azhar’s whereabouts to the funding networks that allegedly allow JeM to continue operating. Investigative reports citing intelligence and security sources have indicated that JeM has increasingly relied on digital wallets and mobile payment platforms, including Easypaisa and SadaPay, to collect and move funds. Some of the wallets have allegedly been linked to members of Azhar’s family, including his son Abdullah Azhar. The reported shift is aimed at making financial flows harder to trace through conventional banking channels. According to reports, funds collected through multiple wallets can be transferred between accounts, broken into smaller amounts or withdrawn as cash, complicating efforts to identify the original source and destination of the money. Reports have also highlighted the use of cryptocurrency, including the stablecoin USDT, as another potential channel for moving funds beyond conventional financial systems. The precise scale of these transactions and the alleged links between individual accounts and JeM require independent verification. Fundraising appeals have reportedly been made under the guise of humanitarian assistance for Gaza and the construction of mosques and religious centres. Investigators have alleged that some donations solicited for these purposes could be diverted to support the group’s infrastructure and activities. The fundraising campaigns have also reportedly included plans to establish a network of religious centres, or markaz, across Pakistan. Security assessments have raised concerns that such infrastructure could provide organisational cover for recruitment, training and other activities. These allegations underline the challenge facing international efforts to counter terrorist financing: even when authorities impose restrictions on designated organisations and individuals, fundraising networks may adapt by shifting to alternative payment systems, charities and intermediaries. India is also expected to point to what it considers uneven enforcement against different UN-designated terrorist figures. Pakistan has taken some visible steps against LeT chief Hafiz Saeed, but New Delhi maintains that the broader networks associated with LeT and JeM continue to raise concerns over terrorist financing and cross-border activities. LeT has also been reported to have adapted its fundraising and organisational structures, including through digital collection methods and political or charitable fronts. The two groups have figured prominently in international counter-terrorism discussions because of their links to attacks in India and concerns over the enforcement of sanctions against their leadership and affiliates. The wider militant landscape presents additional challenges. The Tehreek-e-Taliban Pakistan (TTP) continues to carry out attacks inside Pakistan, with UN estimates placing its strength at around 6,000 fighters in eastern Afghan provinces. Islamabad has repeatedly raised concerns about militant sanctuaries across the border, while the Taliban government has denied responsibility for Pakistan’s security problems. Baloch separatist groups, including the Baloch Liberation Army, and networks linked to al-Qaeda and other militant factions further complicate the regional security environment. Pakistan was placed on the FATF grey list in 2018 over deficiencies in its efforts to counter money laundering and terrorist financing. It was removed from the list in October 2022 after the watchdog concluded that Islamabad had addressed the substantial technical deficiencies identified in its 2018 and 2021 action plans, which covered 34 action items. Pakistan has maintained that it strengthened its anti-money laundering and counter-terror financing framework and fulfilled the requirements set by the international watchdog. However, India and other critics argue that formal compliance with action plans does not necessarily establish that all terrorist networks have been dismantled or that sanctions are being enforced consistently against high-profile figures. The current dispute over Azhar brings that distinction into focus. Pakistan’s inclusion of the JeM chief in its most-wanted list and the reward offered for information about him are visible administrative steps, but India is demanding evidence of concrete action to locate and bring him to justice. The Paris plenary will therefore provide India with an opportunity to press its case that the fight against terrorist financing must be assessed not only through laws, lists and formal commitments, but also through demonstrable enforcement against designated individuals and the networks that sustain them. India is set to confront Pakistan at the FATF plenary over its failure to take verifiable action against UN-designated Jaish-e-Mohammed chief Masood Azhar. New Delhi highlights the direct contradiction between Islamabad's claim that Azhar fled to Afghanistan in 2019 and the Taliban government's denial of his presence on Afghan soil. Investigative reports indicate that Jaish-e-Mohammed has increasingly relied on digital wallets and mobile payment platforms, such as Easypaisa and SadaPay, alongside cryptocurrencies like the stablecoin USDT to move and collect funds. These alternative channels are allegedly used to bypass conventional banking controls and make financial flows harder to trace. India criticized Pakistan's addition of Masood Azhar to its 2026 Red Book with a PKR 7 million reward, dismissing the announcement as a "phony" move. New Delhi maintains that Islamabad needs to demonstrate actual enforcement and locate the terrorist rather than making inconsequential announcements.

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