India’s Role in the 4th ‘No Money for Terror’ (NMFT) Conference

The 4th ‘No Money for Terror’ (NMFT) Conference, held in Munich, highlighted global efforts to combat terror financing. India, a key participant since 2018, reiterated its commitment to strengthening international cooperation in fighting terrorism. The country emphasized the evolving threats posed by digital financial networks and cross-border transactions, calling for unified action against terror financing.

Key Highlights of India’s Participation

Concerns Raised by India

• Terror financing increasingly involves cross-border fund flows and digital transactions.
• Terrorists use complex and evolving financial methods to transfer assets.
• The need for greater international cooperation to track and counter terror financing.

India’s Efforts to Combat Terror Financing

Legal and Institutional Measures

• Strengthened the Unlawful Activities (Prevention) Act (UAPA), 1967 and Prevention of Money Laundering Act (PMLA), 2002.
• Terror Funding and Fake Currency (TFFC) Cell created under NIA.
• Amendments to UAPA and NIA Act, 2019 enabling asset seizure, attachment, and forfeiture.

Enforcement and Intelligence Mechanisms

National Investigation Agency (NIA) introduced three new verticals focused on,

• Cyber Terrorism
• Explosive & Prohibited Arms
• Human Trafficking
• Fake Indian Currency Note Coordination Centre (FCORD) established to curb counterfeit currency.

Financial Sector Regulations

• Reserve Bank of India (RBI) monitors financial ecosystem regulations.
• Financial Intelligence Unit-India (FIU-IND) empowered to issue guidelines for detecting and reporting suspicious transactions.

Permanent Working Group on Terror Financing Identification established, including stakeholders from,

• Law Enforcement Agencies (LEAs)
• Social Media Platforms
• Instant Messaging & Crowdfunding Platforms

Addressing Virtual Digital Assets (Cryptocurrency) Risks

• Virtual Digital Asset Service Providers (VDA SPs) brought under PMLA, 2002.
• AML/CFT/CPF compliance mandatory for cryptocurrency firms.
• Enhanced monitoring of transactions through risk assessment and Know Your Customer (KYC) requirements.

Technology-Driven Countermeasures

• National Intelligence Grid (NATGRID) developed as an IT platform to support intelligence and law enforcement agencies.
• Improved inter-agency coordination for real-time intelligence sharing.