Give out the major sources of terror funding in India and 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.

Introduction

Terrorism thrives on illicit financial networks, which enable recruitment, procurement of arms, and execution of attacks. In India, the issue of terror funding is particularly acute due to its geopolitical vulnerabilities, including cross-border terrorism from Pakistan and internal insurgencies. The 'No Money for Terror (NMFT)' Conference, held in New Delhi in November 2022, aimed to address this global challenge by fostering international cooperation.

Value Addition Block — Key Dimensions of Terror Funding in India

Major Sources of Terror Funding in India

1. Cross-border Sources

• Hawala Networks: Informal money transfer systems are exploited by terror groups, especially from Pakistan.
  • Example: The 2008 Mumbai attacks were partially funded through hawala channels.
• Fake Indian Currency Notes (FICN): Smuggled primarily from Pakistan to destabilize the Indian economy.
  • Data: The National Investigation Agency (NIA) seized ₹8.31 crore worth of FICN in 2021.
• Drug Trafficking: Narcotics from the Golden Crescent (Afghanistan, Pakistan, Iran) fund terror activities.
  • Example: The seizure of 3,000 kg of heroin at Gujarat's Mundra Port in 2021.

2. Domestic Sources

• Extortion and Taxation: Insurgent groups in the Northeast and Maoist-affected areas extort money from businesses and individuals.
  • Example: The NSCN (IM) in Nagaland imposes "taxes" on local traders.
• Charitable Fronts and NGOs: Misuse of funds collected under the guise of charity.
  • Example: The Jamaat-e-Islami was banned for funding terror activities in Jammu & Kashmir.
• Cybercrime and Crowdfunding: Online platforms are increasingly used for anonymous donations.
  • Example: The use of cryptocurrency wallets by terror groups like ISIS.

Efforts to Curtail Terror Funding in India

1. Legislative Measures

• Unlawful Activities (Prevention) Act (UAPA), 1967: Empowers authorities to freeze assets and prosecute individuals/entities involved in terror funding.
• Prevention of Money Laundering Act (PMLA), 2002: Targets money laundering linked to terrorism.
• FCRA Amendments, 2020: Tightened regulations on foreign funding of NGOs.

2. Institutional Mechanisms

• Financial Intelligence Unit (FIU-IND): Monitors suspicious financial transactions.
• National Investigation Agency (NIA): Investigates terror funding cases.
  • Example: The NIA's crackdown on cross-border hawala networks in Jammu & Kashmir.

3. Technological Interventions

• Blockchain Analysis: Used to track cryptocurrency transactions.
• Artificial Intelligence (AI): Deployed to detect suspicious patterns in financial transactions.

4. International Cooperation

• FATF Compliance: India adheres to the Financial Action Task Force (FATF) recommendations to combat money laundering and terror financing.
• Bilateral Agreements: Collaborations with countries like the USA and UAE to share intelligence on financial crimes.

Aim and Objective of the 'No Money for Terror (NMFT)' Conference

1. Aim

The NMFT Conference seeks to strengthen global cooperation in combating terror financing by addressing emerging challenges like cryptocurrency misuse and cyber-enabled financial crimes.

2. Objectives

• Policy Harmonization: Encourage nations to adopt uniform anti-terror financing laws.
• Capacity Building: Share best practices and technological tools for financial intelligence.
• Focus on Emerging Threats: Address the misuse of virtual assets and dark web for terror funding.
• India's Leadership Role: Showcase India's commitment to global counter-terrorism efforts.

3. Key Outcomes of the 2022 Conference

• Emphasis on zero tolerance for terrorism and its financing.
• Call for real-time information sharing among nations.
• Highlighted the need for regulating cryptocurrency to prevent its misuse.

Way Forward

• Strengthening Domestic Mechanisms: Enhance the capacity of agencies like the NIA and FIU-IND through advanced technology and training.
• Global Collaboration: Advocate for a UN-led framework to combat terror financing.
• Public Awareness: Educate citizens about the misuse of crowdfunding platforms and NGOs.
• Regulation of Virtual Assets: Develop robust laws to monitor cryptocurrency transactions.

Conclusion

Terror funding is a transnational challenge that requires a multi-pronged approach involving legislative, technological, and international measures. The NMFT Conference underscores India's leadership in fostering global cooperation to combat this menace. By addressing both traditional and emerging sources of terror financing, India can ensure greater national and global security, aligning with SDG 16 (Peace, Justice, and Strong Institutions).