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) (UPSC GS 3 2023/15 marks)

Introduction:

Terrorism refers to the systematic use of violence, intimidation, and terror to achieve political, ideological, religious, or social objectives. Terror funding is the financial support provided to terrorist organizations or individuals to facilitate their activities, including planning, recruiting, training, and executing acts of terrorism, which needs urgent attention.

Major Sources of Terror Funding in India

1. Hawala Transactions:

   - Unregulated and informal money transfer system.

   - Often used to move funds across borders without detection.

   - Example: The 1993 Bombay bombings were funded partly through hawala channels.

2. Counterfeit Currency:

   - Terrorists produce counterfeit money to finance their activities.

   - Fake Indian currency notes (FICN) have been traced to terror groups like Lashkar-e-Taiba.

3. Donations from Supporters:

   - Terror organizations receive financial support from sympathizers.

   - Charitable donations may be diverted for illicit purposes.

   - Example: Lashkar-e-Taiba's fundraising through charity fronts.

4. Extortion:

   - Terrorists extort money from individuals, businesses, and governments.

   - Threats of violence or attacks are used to force payments.

   - Example: Extortion by Naxalite groups in various Indian states.

5. Narcotics Trade:

   - Terror groups engage in drug trafficking to generate revenue.

   - Funds obtained from drug trade are used to support their operations.

   - Example: The link between drug cartels and insurgency in Jammu and Kashmir.

6. Arms Smuggling:

   - Funds are raised through the illegal sale of arms and ammunition.

   - Terrorists procure weapons to sustain their activities.

   - Example: Infiltration of arms from Pakistan to support militant groups.

7. Kidnappings for Ransom:

   - Abductions of individuals, including foreigners, result in ransom payments.

   - Funds obtained are used to finance terror activities.

   - Example: Kidnapping of foreign tourists by extremist groups in the past.

8. Cybercrime:

   - Terrorists engage in cyberattacks and fraud to acquire funds.

   - Online methods such as phishing and cryptocurrency are exploited.

   - Example: Cyberattacks by hacking groups like APT35 with alleged ties to terrorism.

Efforts to Curtail Sources of Terror Funding:

1. Strengthening Financial Regulations:

   - Enforce stricter financial regulations to monitor and prevent money laundering and terrorist financing.

   - Example: India's Financial Intelligence Unit (FIU) monitors suspicious transactions.

2. Intelligence Sharing:

   - Collaborate with international agencies to share intelligence on terror financing networks.

   - Cooperation with organizations like INTERPOL and FATF.
   
3. Crackdown on Hawala:

   - Target illegal hawala operators and networks.

   - Conduct raids and seize assets involved in hawala transactions.
   
4. Border Security:

   - Enhance border security measures to curb arms and drug smuggling.

   - Use technology and surveillance to monitor border areas.
   
5. Public Awareness:

   - Educate the public about the dangers of supporting or funding terrorist organizations.

   - Encourage reporting of suspicious activities.
   
6. Anti-Money Laundering (AML) Initiatives:

   - Implement AML measures in financial institutions to detect and prevent illicit transactions.

   - Regular audits and compliance checks.

7. International Cooperation:

   - Collaborate with neighboring countries to address cross-border terrorism and its financing.

   - Bilateral and multilateral agreements to combat terror financing.

No Money for Terror (NMFT) Conference, New Delhi 2022:

Aim:

The NMFT Conference aimed to bring together global leaders, experts, and policymakers to discuss and strategize against terrorist financing.

Objectives:

  1. Enhance International Cooperation: Foster greater collaboration among nations to combat terror financing, with a focus on regional cooperation.

  2. Share Best Practices: Share successful strategies and best practices in tracking and preventing terrorist funding.

  3. Raise Awareness: Raise awareness about the evolving nature of terror financing and its impact on security.

  4. Strengthen Legal Frameworks: Discuss the need for and implementation of stronger legal frameworks to counter terror financing.

  5. Encourage Information Sharing: Promote the sharing of intelligence and financial information among nations to track illicit money flows.

  6. Showcase Technological Solutions: Highlight the role of technology and data analytics in identifying and disrupting terror funding.

  7. Develop a Unified Front: Work toward a unified and coordinated global response to choke off the financial lifelines of terrorist groups.

Conclusion

Terrorism remains a significant security concern for India, and disrupting the sources of terror funding is vital in countering this menace. The No Money for Terror Conference was a crucial step in advancing international cooperation and strengthening efforts to curtail terror financing, aligning with India's commitment to global counterterrorism efforts.