Terrorism, a persistent threat to global security, thrives on funding to sustain its operations. In India, like in many other countries, terror organizations rely on various sources for financing their nefarious activities. Major sources of terror funding in India include illicit activities such as drug trafficking, extortion, counterfeit currency circulation, and donations from sympathizers, both domestic and international. Additionally, the misuse of non-profit organizations and charitable institutions for money laundering and funneling funds to terrorist outfits remains a significant concern. In response to this pressing issue, concerted efforts have been underway to curtail these funding sources. The Indian government has implemented stringent measures to crack down on illegal financing channels, enhance surveillance of financial transactions, and strengthen cooperation with international agencies to track and block terror funding networks. Legislative reforms, such as amendments to anti-money laundering laws and the introduction of specialized counter-terrorism financing units, have been instrumental in bolstering India’s capacity to combat terror financing. Against this backdrop, the No Money for Terror (NMFT) Conference held in New Delhi in November 2022 aimed to address the challenges posed by terror financing comprehensively. The conference brought together policymakers, law enforcement agencies, financial intelligence units, and experts from across the globe to deliberate on strategies to choke off funding to terrorist organizations. The primary objective of the NMFT Conference was to foster international collaboration and coordination in tackling the menace of terror financing. Participants exchanged best practices, and shared intelligence, and explored innovative approaches to disrupt the financial lifelines of terrorist groups. Furthermore, the conference served as a platform to raise awareness about the evolving nature of terror financing mechanisms and the need for sustained vigilance and cooperation among nations. By emphasizing the nexus between terrorism and illicit finance, the NMFT Conference underscored the imperative of collective action in safeguarding global peace and security. Ultimately, the conference reaffirmed India’s commitment to combatting terrorism and reiterated the resolve of the international community to deny terrorists access to the resources they need to perpetrate violence and instability.
Answer:
Introduction:
Terror funding in India is a severe threat to national security, involving both domestic and foreign funding sources that support terrorism through channels like hawala, NGOs, and fake currency. In the Global Terrorism Index 2022, it’s ranked 13 out of 163, with a score of 7.17/10. NIA registered 105 cases related to terror funding, filed 94 charge sheets against 876 accused, arrested 796 individuals, and secured convictions for 100 of them.
Body:
Major Sources of Terror Funding in India:
- Hawala Transactions: This method offers a fast and covert way to transfer money, making it attractive to terrorist organisations. For instance, hawala networks played a significant role in funding the 1993 Bombay bombings.
- Drug Trafficking: The Golden Crescent region is notorious for opium production, often processed into heroin and smuggled into India, especially in states like Punjab. Revenue from drug trafficking is a significant source of funding for extremist groups like the Taliban.
- Fake Currency: Counterfeit currency destabilised the economy and funds criminal enterprises. Operations by the NIA have uncovered such activities, where counterfeit notes were printed in foreign countries and then pumped into India to fund terrorist activities.
- Cybercrime: Extremist groups are using sophisticated online methods, such as ransomware attacks and identity theft, to generate funds. Investigations into the Uri attack in 2016 revealed the involvement of digital transactions in funding the assailants.
- Charities and NGOs: Organisations like Jamaat-ud-Dawa disguise themselves as charitable entities to attract donations. However, these funds are often channelled into activities like recruiting and arming militants, as was the case in multiple attacks by its front, Lashkar-e-Taiba.
- Kidnapping and Extortion: Criminal organisations and terrorist groups sometimes overlap in activities like kidnapping for ransom. Groups like the Indian Mujahideen have targeted high-profile individuals to finance their activities through extortion money.
- Crowdfunding and Online Donations: Extremist groups exploit the anonymity of the internet for fundraising. Websites and social media campaigns solicit donations under false pretences, only for these funds to be funnelled into extremist activities.
- Foreign Funding: External funding from states or organizations can substantially bolster extremist activities within India. An example is the alleged involvement of Pakistan’s ISI in the 26/11 Mumbai attacks
Efforts to Curtail These Sources:
- Strong Legal Framework: India has enacted laws like the Unlawful Activities (Prevention) Act, 1967, the Prevention of Money Laundering Act, 2002, and the Foreign Contribution (Regulation) Act, 2010, enabling authorities to prosecute and confiscate assets of terror financiers.
- Comprehensive Monitoring Framework: India has established institutions such as the Financial Intelligence Unit (FIU), the NIA, and the ED to monitor and act against terror funding. They also collaborate with other agencies like the RBI, SEBI, CBDT, CBIC, etc., to enhance compliance.
- Actionable Intelligence Sharing: India has improved its intelligence sharing mechanism with other countries through bilateral and multilateral platforms such as the FATF, the SAARC Terrorist Offences Monitoring Desk (STOMD), and the Regional Anti-Terrorism Structure (RATS) of SCO.
- Provision for Property Confiscation: India has provisions for confiscating the property of individuals and entities involved in terror financing under various laws like the UAPA, PMLA, FCRA, etc. For instance, in 2020, NIA attached properties worth crores belonging to Asiya Andrabi, chief of the banned outfit Dukhtaran-e-Millat.
- Boosting International Cooperation: India has signed bilateral agreements and memoranda of understanding with several countries, including the USA, UK, UAE, France, to exchange information and assistance in terror funding cases.
- OECD Initiative: The OECD launched a program for international collaboration and awareness on money laundering and terrorist financing.
- Participation in Global Forums: India has actively participated in multilateral forums like the No Money for Terror Conference, fostering global collaboration in countering terrorist financing.
Aim and objective of the ‘No Money for Terror [NMFT]’ Conference recently held in New Delhi in November 2022:
Aim of the ‘No Money for Terror (NMFT) Conference:
- Global Collaboration: The conference aimed to promote international cooperation in countering terrorism financing, with 78 countries and 20 ministers participating, underlining the collective commitment. For example, the FATF guidelines were discussed as a global cooperation benchmark.
- Policy Harmonisation: The focus was on aligning anti-terrorism financing policies globally to create a unified front. The European Union’s 4th Anti-Money Laundering Directive served as an exemplary framework for countries to consider.
- Capacity Building: The objective was to equip countries, especially those with developing economies, with the tools and knowledge to combat terror financing. Proposed measures included training programs modelled after the U.S. Department of the Treasury’s counter-terrorism financing courses.
- Transparency and Information Sharing: Enhancing financial system transparency and facilitating international information sharing to trace illicit funds. The role of the SWIFT messaging system in tracking financial transactions was discussed to improve transparency.
Objectives of the ‘No Money for Terror (NMFT) Conference:
- Knowledge Exchange: The immediate goal was to provide a platform for countries to share insights, best practices, and intelligence for countering terror financing. For example, Israel’s use of financial intelligence to disrupt terrorist cells served as a case study.
- Resource Mobilisation: To help countries mobilize financial, technical, and human resources to strengthen their counter-terrorism financing efforts. Australia’s “Countering Violent Extremism” program, backed by significant funding and resources, was cited as a model to emulate.
- Monitoring and Evaluation: Implementing regular monitoring mechanisms to assess the effectiveness of anti-terrorism financing measures. The UN’s Counter-Terrorism Committee Executive Directorate (CTED) assessment protocols were discussed as a potential global standard.
- Civil Society Engagement: Involving civil societies, NGOs, and the private sector to expand surveillance and action against terror financing. Initiatives like Tech Against Terrorism, involving tech companies in the fight against online extremist content, were discussed
Conclusion:
Hence, Fighting terror financing is a worldwide necessity, not limited to a single nation. Conferences like ‘No Money for Terror’ signify positive progress. By combining resources and expertise on both national and global scales, we can effectively cut off the financial support to terrorist groups, contributing to a safer world.
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