Approach:

Introduction- Highlight the gravity of terrorism and how financing is used as a means and method here

Body- Describe India’s strategy to tackle terrorist financing, mention issues and challenges to tackle terrorist financing

Conclusion- Provide suggestions further stressing international cooperation and Indian efforts.

Answer.

Terrorism is among the biggest threats to international peace and security as events in Iraq, and Syria had depicted. However, the financing of such activities is what keeps them alive. This financing happens through different means such as through organized crime like narcotics and human trafficking, through commissions to hawala operations for money laundering, by donations and charitable organizations, sponsorship by states, etc.

Such financing activities provide resources to terrorists to carry out their activities and thus terrorism is closely linked to organized crime networks and particular governments around the world. Thus, financing provides means and methods of terrorism.

India is also a victim of terrorism for decades, particularly state-sponsored ones. But in recent times, it has taken substantial efforts towards cracking down upon terror financing. India's strategy against the financing of terrorism is based on these six pillars:

1. Strengthening the Legislative and Technological Framework- Amendment of Unlawful activities prevention act and strengthening National Intelligence Agency with powers to investigate crimes like trafficking. NIA has been strengthened as a federal crime investigation agency with high anti-terror investigation benchmarks
2. Creation of a Comprehensive Monitoring Framework with Intelligence and security agencies of Centre and States work in tandem to keep a close watch on the elements.

1. A Terror Funding and Fake Currency (TFFC) Cell has been constituted in National Investigation Agency (NIA) to conduct a focused investigation of terror funding and fake currency cases.

1. Actionable intelligence sharing mechanism and strengthening of the investigation and police operations, by strengthening, financial monitoring bodies like the Financial Intelligence Unit and Directorate of Revenue Monitoring etc. Training programmes are regularly conducted for the State Police personnel
2. Provision for confiscation of property under UAPA, prevention of money laundering act ( PMLA) to avoid diversion of funds towards terrorism.
3. Prevent misuse of legal entities and new technologies, such as through the implementation of UN Security Council resolutions and FATF recommendations to prevent the use of new technologies for terrorist financing. Steps to regulate social media, virtual currencies like bitcoins etc,
4. Establishing international cooperation and coordination, such as efforts in Financial Action Task Force to take action against countries sponsoring terrorism, Efforts in United Nations and other international fora to raise the issue.

However, today’s terrorist has moved from dynamite towards a metaverse model utilising technology to aid and assist his operations alongside having greater anonymity. Therefore there are issues and challenges in terrorist financing-

• Different definitions and double standards as per countries’ strategic priorities fund the technological advancement of terrorists. After long support to Taliban in Afghanistan, artificial meth labs for drug trafficking apart from the opium trade traditionally have been set up In southern parts.
• Inadequacy of international mechanisms like the FATF in uprooting terrorist financing though they can limit it. UNSC being a victim of power politics often fails to take steps.
• Lack of uniform understanding of new technologies some countries have legitimised the use of cryptocurrencies whereas others have banned it/ regulated it.
• The use of cyber terrorism for recruitment, radicalisation and guidance evades often radar due to the anonymity of the dark web. The use of the internet for lone wolf attacks is also one manifestation.

Therefore there is a need to move towards solutions for some priority issues such as

1. Preventing diversion from legal financial instruments by fighting anonymity in financial networks and Restricting the use of proceeds of other crimes for terrorist activities,
2. Preventing the use of new financial technologies, virtual assets like crypto-currencies, wallets etc., for terror activities by uniform international standardisation for regulations
3. Eliminate the use of Illegal Channels, Cash Couriers, and Hawala by Terror Networks utilising emerging technologies like face recognition at international airports like India’s DigiYatra can help in this endeavour.
4. Prevent the use of Non-Profit Organisation, NPOs Sector to Spread Terror Ideology by fighting the narrative of the ‘human rights industry’ with fact-based social media discussions.

There is a need for cooperation among all such as intelligence agencies with strategies of Trace, Target and Terminate to be adopted to tackle economic crimes for better standardisation of structures to tackle the new terrorist. There should be no exceptions and excuses and India should move consistently to further build this paradigm for a safer world.