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The Editorial 17 Nov, 2022 - Curbing Terror Financing

INTERNAL SECURITY
17 Nov, 2022

Theme : Challenges to Internal Security

Paper : GS - 3

TABLE OF CONTENT

  1. Context
  2. Terror Financing
  3. India’s Actions to Combat Terrorism
  4. International Initiatives to Counter Terrorism 
  5. FATF
  6. Challenges in India
  7. Road Ahead

Context : As the world shrinks with technological and communication changes, terrorists, weapons and funds are also able to move across national boundaries easily. International co-operation between law enforcement authorities in this area is a sine qua non for combating such cross border challenges.

Terror Financing : 

  • Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors.
  • Terrorists and terrorist organizations often use any resource of money they can have access to in order to fund themselves. This can range from the distribution of narcotics and black market oil.
  • The internet is a growing modern form of terrorist finance as it is able to protect the anonymity that it can provide to the donor and recipient.

India’s Actions to Combat Terrorism : 

  • In the wake of the 26/11 terrorist attack. In January 2009, the National Investigation Agency was established to deal with terrorist crimes.
  • In India, the Unlawful Activities (Prevention) Amendment Act is the primary anti-terrorism law.
  • To gather information related to security, the National Intelligence Grid (NATGRID) has been established.
  • An operational hub has been created for the National Security Guard to ensure a rapid response to terrorist attacks.

International Initiatives to Counter Terrorism :

  • United Nations Office of Counter-Terrorism (UNOCT)
  • Terrorism Prevention Branch (TPB) of United Nations Office on Drugs and Crime (UNODC)
  • Financial Action Task Force (FATF)
  • India’s Annual Resolution on Counter-Terror

FATF : 

  • The FATF was established in July 1989 by a G-7 Summit in Paris to examine and develop measures to combat money laundering. In October 2001, it expanded its mandate to incorporate efforts to combat terrorist financing as well.
  • The FATF’s objectives are “to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system”.
  • The FATF monitors the progress of members and non-members in implementing the FATF Recommendations, “a comprehensive and consistent framework of measures which countries should implement in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction”. It identifies jurisdictions with “weak measures to combat money laundering and terrorist financing (AML/CFT) in two FATF public documents that are issued three times a year”.

Challenges in India :

  • No Global Definition of Terrorism: There are no universally accepted definitions for what constitutes terrorism, so it is hard to classify a particular activity as a terrorist activity, which provides terrorists with an edge and allows some countries to remain silent and veto any action at global institutions.

  • Expanding Web of Terrorism: The Internet provides a relatively unregulated and unrestricted place where terrorists can craft and disseminate propaganda through seemingly limitless numbers of websites and social media platforms, tailoring their pitch so as to target thousands of potential new recruits to join their organization and further their cause.

  • Terror Financing: According to the International Monetary Fund (IMF) and World Bank, criminals launder an estimated two to nearly four trillion dollars each year. Fund movements by terrorists have also been concealed through charities and alternative remittance systems.

    • It taints the international financial system and erodes public trust in the integrity of the system.

    • Furthermore, the lack of regulation of crypto currency could make it a breeding ground for terrorists.

  • Bio-Terrorism: Biotechnology is boon for mankind but it is also a substantial threat because small amounts of biotic agents can be effortlessly hidden, transported and discharged into vulnerable populations.

    • Tropical agricultural pathogens or pests can also be used as anticrop agents to hamper food security worldwide.

  • Cyber Attack: The world is moving towards a digital village where data is the new oil, terrorists use unlawful attacks in a country’s cyberspace, networks and use the information to intimidate or coerce a government or its people in furtherance of political or social objectives.

Road Ahead : 

  • Developing Cyber-Defence Mechanism: A holistic approach for dealing with cyber terrorism is necessary, whether it's conducting cyber search operations or extending the scope of countermeasures against cyber attacks.

    • A clear public posture on cyber defense will boost citizen confidence in the government thus enabling a more engaging, stable and secure cyber ecosystem.

  • Global Counter Terrorism Measures: Terrorism in all its forms and manifestations should be condemned. The international community should rise above political differences and defeat the challenge of terrorism.

    • Accepting a universal definition of terrorism and global sanctions against nations that are state sponsors of terrorism can pave a way for peaceful world order.

  • Capacity Building: India should move in the direction of specialisation of military to fight cross-border terrorism ensuring co-ordination among the intelligence and security agencies to check infiltration of terror activity.

    • Also in order to have speedy trials, India also needs to enhance its National Criminal Justice system and implement strict legal protocol against terrorism

  • Curbing Terror Financing: There is a need to strengthen laws that require banks to perform due diligence on their customers and to report suspicious transactions to prevent terrorism. Also, India can move towards regulating cryptocurrency.India to host “No Money for Terror” Conference in Delhi would be a step in this direction.

FAQs : 

1. What is Terror Financing ?

Answer : Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors.

2. What is FATF ?

Answer : The FATF was established in July 1989 by a G-7 Summit in Paris to examine and develop measures to combat money laundering. In October 2001, it expanded its mandate to incorporate efforts to combat terrorist financing as well.