This paper develops a framework for understanding institutional influence in counter-terrorism policy-making. This framework is utilized in order to conduct the empirical analysis of institutional diffusion effects on states’ counter-radicalization and counter-terrorist financing policies. In its attempt to add an empirical brick to the edifice of IO socialization theory, the paper draws on what it calls a ‘pragmatic-constructivist’ framework in order to explain policy-convergent outcomes and clarify the extent of IO agency in the counter-terrorism security field.