Give out the major sources of terror funding in India and the efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the 'No Money for Terror (NMFT)’ Conference recently held at New Delhi in November 2022.
Terrorism cannot survive without a steady flow of funds. Choking this financial pipeline is one of the most effective strategies in the fight against terror. In India, terror funding originates from a complex network of sources, both domestic and external.
The major sources include:
- State-Sponsorship: The most significant source has been state-sponsored funding from hostile neighbouring countries, which channel money through various front organisations and clandestine routes.
- Organised Crime: Terror groups often collaborate with criminal syndicates, engaging in activities like drug trafficking, extortion, and smuggling to raise funds.
- Counterfeit Currency: Pumping high-quality fake Indian currency notes (FICN) into the economy serves the dual purpose of financing terror and destabilising the economy.
- Hawala Networks: These informal and illegal money transfer systems are extensively used to move funds across borders without leaving a paper trail.
- Misuse of Non-Profit Organisations (NPOs): Some charitable organisations and NPOs have been used as fronts to collect donations and launder money for terrorist activities.
India has adopted a multi-pronged approach to curtail these sources. This includes strengthening laws like the Prevention of Money Laundering Act (PMLA) and the Unlawful Activities (Prevention) Act (UAPA), enhancing the capabilities of agencies like the NIA and ED, and increasing international cooperation. Demonetisation in 2016 was also partly aimed at disrupting cash-based terror funding networks.
In this context, the 'No Money for Terror (NMFT)’ Conference held in New Delhi in November 2022 was a landmark event. Its primary aim was to build global consensus and enhance international cooperation to counter the financing of terrorism.
The key objectives of the NMFT conference were:
- To share expertise and best practices among nations in combating terror financing.
- To address the challenges posed by new and emerging technologies like cryptocurrencies and crowdfunding platforms, which are being exploited for funding terror.
- To strengthen the global legal and regulatory framework against money laundering and terror financing, in line with FATF (Financial Action Task Force) standards.
- To formalise cooperation in intelligence sharing and coordinated operations against transnational terror funding networks.
The conference underscored India's leadership role in the global fight against terrorism, emphasising that a uniform, zero-tolerance approach to terror financing is non-negotiable.
Answered By:
Sarvesh Jha
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Important Questions from GS3
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