Terror Financing

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  • FATF as an Instrument of CFT Compliance in Pakistan

    Pakistan’s desperation to keep itself off the list of defaulting countries maintained by the Financial Action Task Force (FATF) underlines the increasing effectiveness of the organisation, which has become the spearhead against global efforts combating the financing of terrorism (CFT).

    February 26, 2018

    Ways And Means to Choke Maoist Finances

    It is difficult, if not impossible, to completely clamp down on Maoist finances. However, it is possible to restrict the flow of money into their coffers.

    May 11, 2017

    Lifeblood of Terrorism: Countering Terrorism Finance

    Lifeblood of Terrorism: Countering Terrorism Finance
    • Publisher: Bloomsbury Publishing India
      2015

    Terrorism finance has aptly been termed as the lifeblood of terrorism. Yet, this remains one of the most under researched facets of terrorism. This limitation is even more apparent in the Indian context, despite the fact that the country has faced the scrouge of terrorism and insurgency for over five decades. Lifeblood of Terrorism: Countering Terrorism Finance, is the first book on the subject in an Indian context.

    • ISBN 978-93-84052-18-8,
    • Price: ₹. 599/-
    • E-copy available
    2015

    Maoist Finances: Sources, Methods of Collection and Utilization

    Citing IDSA Report, the Minister of State for Home Affairs, RSN Singh said in the Rajya Sabha recently that “…the CPI(Maoist) party has been collecting not less than Rs 140 crores annually from a variety of sources. Further, the possibility of certain front organizations of the CPI (Maoist) … clandestinely getting foreign funds cannot be ruled out.”

    February 17, 2014

    India’s Maoists: Financing the war machinery

    In a document entitled ‘Our Financial Policy’, the Maoists mention that they have three types of economic needs, viz. the needs of war, political propaganda and the people. To cater to these needs there are three broad categories of resources, viz. (a) membership fee, levy and contributions from the people; (b) confiscation of the wealth and income of the enemy; and (c) ‘revolutionary taxes’ collected in guerrilla zones and base areas.

    December 27, 2013

    Mohit Gupta: How is organised crime in India reinforcing terrorism? What are the linkages especially with regard to terror funding?

    Vivek Chadha replies: Crime and terrorism can potentially have a very close linkage. While there may or may not always be a linkage between the two, however, both international case studies and those in India do point towards it.

    If we look at some of the regions in the country affected by terrorism, this linkage becomes apparent. In the Northeast, extortion is the fundamental basis for funding all forms of terrorism. In addition to this, kidnapping has been used extensively for spreading terror and raising funds. Human trafficking, drug trafficking and gun running are some of the other criminal activities that have been common in these areas.

    In J&K, counterfeit currency has been a major source of funding terrorism.

    In the Maoist terror movements, extortion is yet again a common phenomenon. They have also indulged in robberies of banks to fund their movement. There have also been reports of cuts being enforced on drug yielding crops in the region.

    The Indian Mujahideen has also resorted to crime to raise funds. This includes robberies, kidnappings, etc.

    There are also a number of insurgent groups which over a period of time have morphed into crime syndicates. What began as an ideological movement is now merely a means of generating profit. This is especially the case with insurgent groups in Northeast India.

    Vikash Gupta asked: How is the money raised or what is the source of funding for Hurriyat and separatist groups in Kashmir?

    Vivek Chadha replies: There are a number of sources of finance for the Hurriyat and terrorist groups in Kashmir. Most of the sources emanate from across the border in Pakistan or controlled by Pakistan through West Asia. The sources of finance include narco-financing which comes from the control of narcotics trade in the AfPak region. It also emanates from donations both within Pakistan and West Asia. This is either from charities openly involved in collection like the JuD and others which use charities as fronts to collect money. A percentage of infusion of money comes through counterfeit currency. Criminal activities and legitimate businesses are also being operated to generate money for separatists.

    This collection is routed through a number of means. It comes through physical smuggling of currency. It is also routed through hawala which has emerged as the largest network for pumping money in India. Trade based induction of money is also on the increase. And lastly, legitimate banking channels are employed to send money in small quantities in order to avoid suspicion.

    Terror Financing in Bangladesh

    This article deals with financing of Islamist terror in Bangladesh, which on occasions becomes jihadi in nature, especially when it is directed towards India. The exercise undertaken studies developments in the area of terrorist finance in Bangladesh post-9/11, but does not claim to fully estimate the volume of terror financing in that country. The attempt has been made to throw some light on an area where little research has been done. The article argues that the Government of Bangladesh has shown a half-hearted approach towards checking the finance of terrorism.

    November 2009

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