Terrorist organisations are increasingly exploiting social media, instant messaging, and streaming platforms to raise, transfer, and conceal funds, the Paris-based Financial Action Task Force (FATF) has said in a new report accessed by The Secretariat.

Titled “Detecting and Disrupting Terrorist Financing Activity Through Social Media, Instant Messaging Applications and Streaming Platforms (SMSPs),” the report points out how rapid advances in digital technology are reshaping the global terror financing landscape. 

This month, India too launched an industry-led platform to strengthen Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) – a move that came none too soon, as most countries may be caught unawares. 

FATF President Elisa de Anda Madrazo said the digital transformation of financial services has significantly expanded the reach and capabilities of terrorist financing networks.

“Terrorist financing has gone digital, and with it, the ability to reach billions of people and magnify the impact of attacks has never been greater. No single jurisdiction or authority can address this threat alone, so we need to work closely together to prevent criminals from misusing these platforms to cause harm around the world,” she said in a statement.

QR codes, frequent changes in cryptocurrency wallet addresses, and virtual asset transfers are being used by terror financiers to receive donations, the report said.

Few Countries Are Prepared

FATF, a global anti-money laundering and counter-terrorist financing watchdog, says platforms once meant primarily for communication and propaganda have evolved into sophisticated financial ecosystems that are being exploited by terrorist networks.

According to FATF, less than 30% of reporting jurisdictions currently assess terrorist financing risks linked to social media, messaging, and streaming platforms as part of their national risk assessments.

“Through its work, the FATF has found that less than 30% of reporting jurisdictions are covering terrorist financing risks through SMSPs in their national risk assessments, so it is essential to step up global efforts to identify and counter this evolving threat,” the report said.

New Digital Methods

Building on its 2025 Comprehensive Update on Terrorist Financing Risks, FATF identifies several emerging methods being used to generate and move funds. 

Besides fraudulent humanitarian crowdfunding campaigns, the report points to creator-economy monetisation features, cryptocurrency donations, live-streaming and tipping services as methods that allow terrorist groups to solicit financial support from audiences across the globe.

They are employing encrypted messaging services, disappearing content, and coded language to evade detection by law enforcement agencies and financial intelligence units. In some cases, commercial entities are also being used to disguise or facilitate terrorist financing activities.

FATF warned that the convergence of artificial intelligence, decentralised finance (DeFi), encrypted communications, virtual assets, and embedded digital payment systems is making terrorist financing more complex and harder to detect. 

It stressed that governments, financial institutions, and technology companies would need to strengthen cooperation to keep pace with rapidly evolving threats.

India’s Platform Against Money Laundering

Amid rising concerns over cyber fraud, money laundering, terrorist financing, and risks posed by digital assets, as flagged by FATF, India launched the Alliance of Reporting Entities in India for AML/CFT (ARIFAC) this month.

It will bring together banks, non-banking financial companies (NBFCs), payment firms, insurers, securities market intermediaries, virtual digital asset service providers, and other reporting entities covered under the Prevention of Money Laundering Act (PMLA). 

The Financial Intelligence Unit-India (FIU-IND) will participate in the initiative as an observer.

“The platform aims to promote knowledge sharing, improve compliance standards, enhance institutional capabilities, and support India's efforts to combat financial crime while strengthening the integrity of the financial system," ARIFAC said in a statement.

The initiative comes as financial institutions confront increasingly sophisticated threats, including cyber-enabled fraud, money laundering, terrorist financing, sanctions evasion, mule account networks and the rapid expansion of virtual digital assets.

ARIFAC will focus on five priority areas — capacity building through training and certification programmes, cross-sector collaboration, engagement with regulators and law enforcement agencies, development of industry-wide typologies and best practices, and representation of India's reporting entity ecosystem at international forums.

Industry-led working groups under the alliance will examine issues such as enhanced customer due diligence, sanctions screening, cross-border information sharing, mule account detection, digital banking risks and virtual digital assets. 

Industry bodies backing the initiative said it would help improve AML/CFT awareness and compliance maturity across financial institutions while aligning India's financial crime prevention framework with evolving global standards. 

The alliance aims to improve coordination among reporting entities, strengthen compliance standards, and build institutional capacity to tackle evolving financial crime. Its secretariat will be jointly managed by the Payments Council of India (PCI) and the Fintech Convergence Council (FCC).

Developing Counter-Strategies

FATF said the report was prepared in consultation with major technology companies and specialist think tanks to better understand emerging vulnerabilities and develop practical strategies to counter terrorist exploitation of digital platforms.

Among its recommendations, the watchdog called for stronger public-private partnerships, greater information sharing, improved coordination among national authorities, enhanced understanding of platform monetisation features and more comprehensive national risk assessments. 

It also urged countries to integrate financial intelligence with digital intelligence to improve the detection and disruption of terrorist financing networks.

The integration of payment systems, virtual assets, creator monetisation tools, and cross-border financial services into social media, messaging, and streaming platforms has significantly expanded the range of financial channels available to terrorist groups, the report said.

While social media, messaging, and streaming platforms are not directly covered under FATF's anti-money laundering and counter-terrorist financing standards, the organisation noted that financial activities conducted through these platforms may already fall within the scope of existing international regulations.