Answer: Financial Action Task Force (FATF)
Notes: In July 2025, the Financial Action Task Force (FATF) released the ‘Comprehensive Update on Terrorist Financing Risks’ report. The report highlights how terrorist groups continue to misuse the global financial system to fund attacks. Key risk factors include lone actors, small terror cells needing low funds, porous borders in Africa and South Asia, and state-sponsored terrorism. Weak regulations in Free Trade Zones also increase the risk. Conventional methods include cash deals, Hawala, and informal systems used by groups like Al-Shabaab and Hamas. Emerging trends involve use of digital tools like social media, crowdfunding, Bitcoin, and online gaming for funds.
