India, June 21 -- 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 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 equip...