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Hindustan Times
a day ago
- Business
- Hindustan Times
FATF flags Pak case to sound global weapons funding alarm
A new report by the global financial crimes watchdog has cited India's seizure of equipment with military use bound for Pakistan in 2020 as evidence of widespread failures in preventing weapons proliferation financing, a problem that poses significant threats to world security and the integrity of the international financial system. FATF flags Pak case to sound global weapons funding alarm The Financial Action Task Force (FATF) report, published late on Friday, found that 84% of assessed countries demonstrated inadequate controls despite what FATF described as the 'grave threat' posed by such activities. The report featured a case study detailing how Indian customs authorities in 2020 intercepted dual-use items that were mis-declared as medical equipment but were actually destined for Pakistan's ballistic missile programme. 'Indian custom authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment's dual-use items,' the FATF report titled Complex Proliferation Financing and Sanctions Evasion Schemes stated. The items were listed as autoclaves, which are 'used for sensitive high energy materials and for insulation and chemical coating of missile motors.' A senior Indian government official described the study as 'the most comprehensive and updated survey of risks related to proliferation financing,' noting that it identifies Pakistan alongside North Korea and Iran as countries where proliferation financing risks 'are inherent.' The FATF categorised the incident as 'non-declaration of dual use goods under the prescribed export laws of the exporting country.' Though the report did not name the exporting country, the ship was intercepted in Indian waters while travelling from China's Jiangyin port to Pakistan's Karachi port, as reported by Indian media, including HT, at the time. What was not reported till now, and referenced in the FATF report, is the link of the shipment to Pakistan's National Development Complex, a defence and aerospace agency under the Pakistan government. 'The Bill of Lading of the seized cargo provided evidence of the link between the importer and the National Development Complex, which is involved in the development of long-range ballistic missiles,' the report stated. Officials said the timing strengthens India's position as it prepares to oppose the World Bank's $20 billion lending commitment to Pakistan over 10 years. India will oppose development funding to Pakistan at the World Bank's upcoming meetings, one of these people said, asking not to be named. 'India is not against multilateral agencies such as the IMF and World Bank extending financial support for the development of the people of Pakistan. However, there is ample evidence that these development funds are diverted by Islamabad from development projects to arm purchase and terror funding,' said one of these officials, asking not to be named. In May, finance minister Nirmala Sitharaman contacted IMF leadership directly, presenting evidence of Pakistan's alleged misuse of development funds for military purchases. Despite India's intervention, the IMF executive board approved a $1.4 billion loan for Pakistan under climate resilience funding, though it later imposed 11 strict conditions following New Delhi's objections. 'Pakistan is unlikely to meet those conditions and thus it would not be able to avail the IMF funding,' the official added. Citing data available with multilateral agencies, this official explained: 'Pakistan spends on average around 18% of its general budget on 'defence affairs and services', while even the conflict-affected countries spend on average far less (10-14% of their general budget expenditure). Further, Pakistan's arms imports increased dramatically from 1980 to 2023 by over 20% on average in the years when it received IMF disbursements in comparison to years when it did not receive the same'. A second official said the latest report very nearly 'clubs Pakistan with rogue countries like North Korea.' 'This report will help India in pushing it for placing Pakistan in the grey list again.' The report also comes days after FATF condemned the April 22 Pahalgam terror attack, saying it could not have occurred without means to move funds between terrorist supporters, which Indian officials described as a positive step in New Delhi's renewed attempts to put Pakistan back on the grey list. The FATF report highlighted significant vulnerabilities across the global financial system in countering the financing of weapons of mass destruction. It revealed that only 16% of countries worldwide have demonstrated effective implementation of UN sanctions designed to prevent weapons of mass destruction financing. The report cited North Korea as 'the most significant actor' in proliferation financing — having 'generated billions of dollars through cyberattacks targeting virtual asset-related companies, such as the theft of USD 1.5 billion from ByBit in February 2025,' according to the FBI. The report identified four primary methods used to evade sanctions: employing intermediaries, concealing beneficial ownership, exploiting virtual assets and manipulating shipping sectors. In the 2020 incident, the merchant vessel Da Cui Yun, sailing under Hong Kong flag, was stopped by India's customs department at Kandla port in Gujarat on February 3 for wrongly declaring an autoclave as an 'industrial dryer.' An autoclave -- a device that uses high-pressure steam and heat to sterilise materials -- is used in hospitals for sterilising medical equipment, but also helps in the manufacture of specialised materials for missile components under controlled high-pressure and temperature conditions. The interception was following an intelligence tip-off, and experts from the Defence Research and Development Organisation, including nuclear scientists, examined the 18x4-metre autoclave and determined it was dual-use equipment that could serve civilian or military purposes. The vessel was allowed to leave after the autoclave was seized. Reports suggested the Da Cui Yun had made multiple voyages from China to Karachi via Indian ports carrying machinery. The report underscores that 'unless both the public and private sectors urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in existing controls.'
The Hindu
2 days ago
- Business
- The Hindu
FATF report links dual-use cargo seized by India in 2020 to Pakistan missile agency
A dual-use equipment seized by India from a Pakistan-bound merchant vessel in 2020 is linked to Islamabad's National Development Complex, which is involved in the country's missile development programme, a new report by the Financial Action Task Force (FATF), the global anti-terror financing watchdog, has said. The report listed the case under a section on the misuse of the maritime and shipping sectors, including to transport a range of commodities, including dual-use equipment. 'In 2020, Indian Customs authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment's dual-use items,' the FATF report said. 'Indian investigators certified the items for shipment to be 'autoclaves', which are used for sensitive high-energy materials, and for insulation and chemical coating of missile motors,' the report said. It said these sensitive items are included in dual-use export control lists of the Missile Technology Control Regime (MTCR). The bill of lading of the seized cargo provided evidence of the 'link between the importer and the National Development Complex, which is involved in the development of long-range ballistic missiles', it said. The export of equipment such as autoclaves without formal approval from various authorities is a violation of the existing law, the FATF said. Pakistan's National Development Complex (NDC) has played a crucial role in the development of Pakistan's missile programme. India seized the dual-use equipment from merchant vessel Da Cui Yun at Kandla port in Gujarat on February 3, 2020. Loopholes The report noted significant vulnerabilities in the global financial system in countering the financing of weapons of mass destruction (WMD). "Despite the grave threat posed by proliferation financing, only 16 per cent of countries assessed by the FATF and its global network have demonstrated high or substantial effectiveness" in a process that evaluates the implementation of targeted financial sanctions under the United Nations Security Council resolutions on proliferation. The report said that unless the public and private sectors urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in the existing controls. The report provided a detailed analysis of the evolving methods and techniques used to evade proliferation financing-related sanctions. 'Illicit actors are employing increasingly sophisticated methods to evade sanctions and circumvent export controls,' it said.
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First Post
2 days ago
- Business
- First Post
FATF links dual-use equipment seized by India to Pakistan's missile programme
A dual use equipment seized by India from a Pakistan bound merchant vessel in 2020 is linked to Islamabad's National Development Complex that is involved in the country's missile development programme, a new report by the Financial Action Task Force has said. read more India's 2020 seizure of Pakistan-bound dual-use equipment has been linked to Islamabad's missile development programme, according to a new report by the Financial Action Task Force (FATF). The equipment, intercepted from a merchant vessel is associated with Pakistan's National Development Complex, a key entity involved in the country's missile development. FATF, the global financial watchdog, referenced the case in its latest report, which outlines risks and vulnerabilities in the international financial and trade systems. The incident was cited under a section highlighting the misuse of the maritime and shipping sectors to move sensitive goods, including dual-use items that can be repurposed for weapons programmes. STORY CONTINUES BELOW THIS AD 'In 2020, Indian custom authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment's dual-use items,' the FATF report said. 'Indian investigators certified the items for shipment to be 'Autoclaves', which are used for sensitive high energy materials and for insulation and chemical coating of missile motors,' the report said. It said these sensitive items are included in dual-use export control lists of the Missile Technology Control Regime (MTCR). The bill of lading of the seized cargo provided evidence of the 'link between the importer and the National Development Complex, which is involved in the development of long-range ballistic missiles,' it said. The export of equipment such as the autoclaves without formal approval from various authorities is a violation of existing law, the FATF said. Pakistan's National Development Complex (NDC) has played a crucial role in the development of Pakistan's missile programme. India had seized the dual-use equipment from merchant vessel Da Cui Yun at Kandla port in Gujarat on February 3, 2020. The Indian customs authorities had stopped the vessel for wrongly declaring an autoclave, which can be used in construction of missiles, as an 'industrial dryer'. The report said that significant vulnerabilities remain across the global financial system in countering the financing of weapons of mass destruction (WMD). STORY CONTINUES BELOW THIS AD 'Despite the grave threat posed by proliferation financing (PF), only 16 per cent of countries assessed by the FATF and its global network have demonstrated high or substantial effectiveness' in a process that evaluates the implementation of targeted financial sanctions under the United Nations Security Council resolutions on proliferation. The report said that unless the public and private sectors urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in existing controls. The report provided a detailed analysis of the evolving methods and techniques used to evade PF-related sanctions. 'Illicit actors are employing increasingly sophisticated methods to evade sanctions and circumvent export controls,' it said. With inputs from agencies
Hindustan Times
2 days ago
- Business
- Hindustan Times
FATF cites India's seizure of dual-use tech from Pak-bound ship in new report
New Delhi: The Financial Action Task Force (FATF) has highlighted India's seizure of dual-use equipment used in developing missiles from a Pakistan-bound merchant vessel in 2020 in a new report flagging vulnerabilities in the global financial system for countering the financing of weapons of mass destruction (WMDs). The stopping of the Pakistan-bound ship and the seizure of dual-use equipment cited in the FATF report was widely reported by the Indian media, including Hindustan Times, when it happened in February 2020. (PTI File Photo) The report from the multilateral financial watchdog listed the incident involving Pakistan among six case studies in a section covering the misuse of the maritime and shipping sectors, including a vast network of vessels, ports and logistics, by illicit actors to evade sanctions and transport a range of commodities, including dual-use equipment. The stopping of the Pakistan-bound ship and the seizure of dual-use equipment cited in the FATF report was widely reported by the Indian media, including Hindustan Times, when it happened in February 2020. However, some aspects of the incident mentioned in the FATF report - such as the fact that the importer of the cargo was linked to Pakistan's National Development Complex, which is involved in the country's missile development programme - haven't been reported before. The FATF listed the incident as one of 'non-declaration of dual use goods under the prescribed export laws of the exporting country'. Though the FATF didn't name the exporting country, the ship was stopped in Indian waters while on its way from China's Jiangyin port to Pakistan's Karachi port. 'In 2020, Indian custom authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment's dual-use items,' the FATF report said. 'Indian investigators certified the items for shipment to be 'Autoclaves', which are used for sensitive high energy materials and for insulation and chemical coating of missile motors,' the report said, adding that these sensitive items are included in dual-use export control lists of the Missile Technology Control Regime (MTCR), India and other countries. The report said the bill of lading of the seized cargo 'provided evidence of the link between the importer and the National Development Complex, which is involved in the development of long-range ballistic missiles'. The export of equipment such as the autoclaves without formal approval from various authorities is a violation of existing law, the FATF said. The National Development Complex (NDC), also known as the National Defence Complex, is a defence and aerospace agency under Pakistan's defence ministry. It has played a crucial role in the development of Pakistan's missile programme. HT had reported last month that a NDC facility at Attock in Pakistan's Punjab province that builds transporter-erecter-launcher vehicles for missiles was among military installations targeted by Indian drones on May 8 during hostilities between the two countries. HT had reported that the merchant vessel Da Cui Yun, which sails under the flag of Hong Kong, was stopped by India's customs department at Kandla port in Gujarat on February 3, 2020, for wrongly declaring an autoclave, which can be used in construction of missiles, as an 'industrial dryer'. At the time, the vessel was sailing from the Chinese inland port of Jiangyin to Port Qasim in Karachi. Indian authorities intercepted the vessel when it dropped anchor at Kandla following an intelligence tip-off. Experts from the Defence Research and Development Organisation (DRDO), including a team of nuclear scientists, examined the cargo and determined that the 18x4-metre autoclave – a pressure chamber for carrying out various industrial and scientific processes - was a dual-use item that could be used for civilian or military purposes. The vessel was allowed to leave Kandla after the autoclave was seized. Reports at the time had suggested that the Da Cui Yun had sailed several times from China to Karachi via Indian ports carrying several cargoes of machinery. The FATF report said despite the 'grave threat posed by proliferation financing', only 16% of countries assessed by the watchdog and its global network have demonstrated high or substantial effectiveness in a process that evaluates the implementation of targeted financial sanctions under the United Nations Security Council resolutions on proliferation. The report said that unless the public and private sectors 'urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in existing controls'. The report highlighted the evolving methods and techniques used to evade sanctions related to proliferation financing and national and multilateral regime, and outlined how proliferation networks are sourcing dual-use goods, technologies, and knowledge - often through procurement networks and front companies - and using various financial channels to access the global financial system. The report listed the misuse of the maritime and shipping sectors as one of four main methods used to evade sanctions.
Time of India
2 days ago
- Business
- Time of India
FATF Report Reveals Pakistan's Missile Programme Link to 2020 Cargo Seized in India
A fresh FATF report has reignited global scrutiny on Pakistan's military proliferation activities, spotlighting a 2020 cargo seizure at India's Kandla port linked to Islamabad's missile programme. The consignment — a large autoclave used in ballistic missile production — was mis-declared and originated from China's Jiangyin port, headed for Port Qasim in Karachi. The consignment was traced back to Pakistan's National Development Complex (NDC), responsible for developing long-range ballistic missiles. The FATF report, titled 'Complex Proliferation Financing and Sanctions Evasion Schemes', marks this as a case of serious proliferation financing (PF) violation. The revelation comes shortly after the April 22 Pahalgam terror attack, with FATF condemning the incident and emphasizing that terror attacks rely on financial networks. India now plans to highlight these findings in a diplomatic push to re-list Pakistan on the FATF grey list, targeting both terror financing and WMD proliferation as part of its case.#india #pakistan #fatf #fatfreport #pakistanmissileprogram #indiaexposespakistan #kandlaportseizure #terrorfinancing #fatf2025 #nationaldevelopmentcomplex #missileproliferation #chinaexportviolation #greylistpakistan #toi #toibharat #bharat #breakingnews #indianews Read More
