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. (250 words)
Introduction Terror funding remains a significant challenge for India, with various sources contributing to the menace. Recent data highlights the increasing complexity of these funding channels. The ‘No Money for Terror (NMFT)’ Conference held in New Delhi in November 2022 aimed to address these concerns and foster international collaboration.
Major Sources of Terror Funding in India
- Criminal Activities: Terrorist groups engage in a range of criminal activities to raise funds. This includes illegal contraband trade, extortion, looting, and kidnapping for ransom.
- Abuse of Non-Profit Organizations: Some non-profit organizations are misused to channel funds for terror activities.
- Money Value Transfer Services: Hawalas and other informal money transfer services are frequently used by terrorist groups.
- Crypto Assets: There’s a growing trend of terrorist groups exploiting crypto assets to raise and move funds. This shift is likely due to increased familiarity with these avenues among terror group members.
- Digital Platforms: Ethnically or racially motivated terrorist groups often use digital platforms for crowdfunding, collecting membership fees, and even selling merchandise.
Efforts to Curtail Terror Funding in India
- Monitoring and Reporting: Organizations like the Financial Action Task Force (FATF) actively monitor evolving terrorist financing risks and issue regular reports.
- Embracing Technology: Countries are encouraged to use advanced analytics and data pooling to better understand and counter terror funding.
- Public-Private Partnerships: Collaboration with the private sector, especially financial institutions, can help in detecting and tracking illicit financial flows.
- Risk Assessment: The FATF recommends countries to identify, assess, and understand their terrorist financing risks and take appropriate action to mitigate them.
- Guidance and Training: The FATF provides guidance and training to countries, especially those with lower capacities, to help them assess and counter terrorist financing risks.
Aim and Objective of the ‘No Money for Terror (NMFT)’ Conference
- Global Collaboration: The conference aimed to foster international collaboration in countering terrorist financing.
- Understanding Evolving Threats: Discussions revolved around global trends in terrorism and terrorist financing, including the use of formal and informal financial channels.
- Use of Technology: The conference emphasized the importance of leveraging technology to counter terror funding, especially given the increasing use of digital platforms and crypto assets by terrorist groups.
- Strengthening National Responses: The FATF’s role in helping countries strengthen their responses to terrorist financing was highlighted, with a focus on risk assessment and guidance.
Conclusion: To effectively counter terror funding, a multi-pronged approach is essential. This includes international collaboration, leveraging technology, and strengthening national responses. As the threat evolves, so must our strategies, ensuring a safer future for all.
