'Involved in development of ballistic missiles': FATF calls out Pakistan for flouting norms; India may use dossier to push for sanctions

A new report from the Financial Action Task Force (FATF) has cited a case involving Pakistan’s missile development programme, referencing a shipment seized by Indian customs officials in 2020 that was bound for Port Qasim in Karachi. The FATF case study outlines how dual-use goods, including equipment critical for ballistic missile technology, were mis-declared in export documents and linked directly to Pakistan’s National Development Complex, which is known to be involved in the development of long-range ballistic missiles.


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The FATF report reveals that Indian investigators intercepted a cargo ship falsely declaring autoclaves, equipment used for high-energy materials and missile motor components. “The Bill of Lading of the seized cargo provided evidence of the link between the importer and the National Development Complex,” the report noted.

This latest disclosure comes as FATF increases its scrutiny of state-sponsored terrorism, particularly following the April 22 terror attack in Pahalgam, Kashmir, which left 26 dead. In a public condemnation, FATF said: “This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters.”

As per PTI sources, India is likely to use this FATF disclosure in its dossier to push for Pakistan’s return to the FATF grey list. The upcoming Asia Pacific Group meeting in August and the FATF plenary in October may see renewed calls for sanctions or monitoring. According to officials cited by PTI, the inclusion of “state-sponsored terrorism” in the FATF’s upcoming analysis marks a significant step in acknowledging Pakistan’s involvement in funding and facilitating terror operations.


The incident flagged by FATF, which occurred in February 2020 at Kandla port, saw authorities act on intelligence regarding a suspicious Hong Kong-flagged ship, Da Cui Yun, that had departed from China’s Jiangyin port, TOI had reported. Officials seized a massive pressure chamber described as a pipe-like object, 35-40 feet in length, now confirmed to have potential ballistic missile applications. Experts from the Defence Research and Development Organisation (DRDO) joined a high-level investigation into the cargo, amid tight-lipped responses from customs due to the national security implications.

Also read: ‘Suspicious’ Chinese ship seized at Kandla, under strict scrutiny

The FATF report also highlighted the growing global risk from proliferation financing (PF), especially concerning state and non-state actors acquiring dual-use technologies for weapons of mass destruction (WMD). “The proliferation of weapons of mass destruction and related financing represents a significant threat to global security and the integrity of the international financial system,” the report warns, adding that failure to implement effective controls could allow actors to exploit weaknesses in global export and financial systems.