India’s Role in Combating Terror Financing

March 15, 2025

Recently, India reaffirmed its commitment to combat terrorism at the 4th ‘No Money for Terror’ Conference. The nation emphasised the importance of global unity against terrorism. India brought into light the evolving complexities in terror financing due to advancements in digital technology. This has made tracking the flow of funds more challenging.

Terror Financing Challenges

Terror financing poses threats to global security. The emergence of new technologies has complicated the methods and channels for transferring funds. Cross-border linkages have increased, making it difficult for nations to combat terrorism effectively.

Strengthening Legal Frameworks

To tackle these challenges, India has enhanced its legal frameworks. Amendments to the Unlawful Activities (Prevention) Act, 1967, and the Prevention of Money Laundering Act, 2002, have been implemented. These changes enable more effective monitoring and control of terror financing activities.

Establishing Dedicated Units

The Government of India has established several dedicated units to focus on terror financing. The National Investigation Agency (NIA) created a Terror Funding and Fake Currency Cell. This cell investigates cases related to terror funding and counterfeit currency. Additionally, a Fake Indian Currency Note Co-ordination Centre (FCORD) has been set up to enhance intelligence sharing among security agencies.

Role of Financial Institutions

The Reserve Bank of India oversees the regulatory aspects of the financial ecosystem. The Financial Intelligence Unit-India (FIU-IND) is empowered to issue guidelines to detect suspicious transactions. This includes developing red flag indicators for various sectors to ensure compliance with anti-money laundering regulations.

Engagement with Stakeholders

The FIU-IND has initiated a Permanent Working Group on Terror Financing Identification. This group includes representatives from reporting entities, law enforcement agencies, and experts from digital platforms. Their collaboration aims to address risks associated with virtual digital assets, such as cryptocurrencies.

National Intelligence Grid (NATGRID)

The National Intelligence Grid (NATGRID) has been established as an IT platform. It supports intelligence and law enforcement agencies in monitoring and analysing data related to terrorism. This platform enhances the overall efficiency of counter-terrorism efforts.

Participation in International Conferences

India has been participating in the NMFT Conferences since 2018. Each conference has improved understanding and cooperation among nations. Enhanced coordination has led to better intelligence generation and law enforcement actions.

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