Q20. 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 (NMPT Conference recently held at New Delhi in November 2022. (15m) – Internal Security
Terrorist activities in most cases require substantial financial support. In fact, Terrorism finance or funding can be termed as the lifeblood of terrorism, a critical element to sustain operations related to terrorism.
Major sources of terror funding in India
- Illegal Operations: Involvement in illegal activities such as drug trafficking, extortion, kidnapping, and smuggling.
- Supporters: Contributions from individuals sympathetic to militant ideologies, often from their known sources of income.
- Charitable Institutions: Donations to non-profit or charitable organizations that may act as fronts for terrorist groups, either knowingly or unknowingly.
- Cartels and Criminal Networks: Collaboration with criminal organizations engaged in drug trafficking, narcotics trade, and other illicit enterprises.
- Counterfeiting: Manufacturing counterfeit currency or smuggling legitimate currency.
- Informal Channels: Utilizing informal money transfer systems like hawala to move funds discretely.
- Bulk Cash Smuggling: Physically moving large sums of money across borders.
- Use of emerging technologies: Such as cryptocurrencies and other virtual assets.
National efforts to curtail terror funding
- India’s 5 pillared strategy against the financing of terrorism:
- Cooperation, coordination, and collaboration among all intelligence and investigative agencies.
- The strategy of “Trace, Target, and Terminate”.
- Strengthening and harmonising the legal structures.
- Mechanism to prevent the misuse of Next Generation Technology.
- Strengthening the legal and regulatory framework for asset recovery.
- National Investigation Agency (NIA): Federal agency established by the Indian Government to combat terror in India.
- Unlawful Activities Prevention Act: Anti-terror legislation that seeks to designate an individual as a “terrorist”.
- National Intelligence Grid or NATGRID: It is a seamless and secure database which provides information on terrorists, economic crimes etc.
- Multi Agency Centre (MAC) and Subsidiary Multi Agency Centres (SMAC): Mandate is to share terrorism related intelligence inputs on a daily basis.
- India has proposed a permanent secretariat to coordinate bid to fight terror funding: Overall approach of “Beyond-Border Cooperation” is the basis for countering terror funding on a global level.
No Money for Terror (NMFT) Conference
- Third ministerial ‘No Money for Terror (NMFT)’ conference was held at New Delhi in November 2022.
- Aim and objectives of the conference include:
- Enhance international cooperation in countering terrorist financing.
- Share best practices and tools for detecting and preventing terrorist financing.
- Promote the development and implementation of robust policies and regulations.
- Address emerging threats and evolving methods used by terrorists for financing.
To further efforts against terror financing, there is a need to enhance international cooperation, adapt to evolving financial technologies, strengthen legal frameworks, and invest in robust intelligence capabilities. Overall approach of “Beyond-Border Cooperation” is the basis for countering terror funding on a global level.
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