India has intensified its efforts to combat the financing of terrorism and is actively collaborating with international financial institutions

India is pushing organizations such as the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB) to reassess their financial support for Pakistan to guarantee that development resources are not redirected to fund terrorism.

India is pushing for Pakistan’s reinstatement on the Financial Action Task Force (FATF) grey list, highlighting the necessity for rigorous oversight of its financial frameworks to avert terror funding.

Terrorism Funding

Definition: Terror funding refers to the supply of money or financial resources to individual terrorists or terrorist groups. These funds may come from both lawful and unlawful sources and are utilized to support terrorist activities, such as recruitment, training, and carrying out attacks.

Key Origins of Terror Funding:

Hawala Transactions: An unofficial way to send money without actual transport, frequently used to finance terrorist operations.

Counterfeit Money: The presence of fake currency harms the economy and offers untraceable money for terrorist activities.

Drug Trafficking: The illegal drug trade acts as an important source of income for terrorist organizations.

Extortion and Abductions: Terrorist groups participate in extortion and kidnappings to obtain money from people and companies.

Charitable Organizations and NGOs: Certain groups are exploited as covers to gather and direct money towards terrorist endeavors.

Issues in Fighting Terror Funding

Intricate Financial Networks: Terrorist organizations employ advanced and dispersed financial structures, complicating detection and intervention efforts.

Insufficient Global Collaboration: Poor cooperation between countries hinders the worldwide effort to combat terror financing.

Legal and Regulatory Shortcomings: Differences in legal systems and enforcement abilities among nations create opportunities that terrorists take advantage of.

Abuse of Technology: The emergence of cryptocurrencies and online payment methods provides anonymity, enabling untraceable transactions.