- Prelims: Current events of international importance(Terrorism, FATF, UNSCR resolution 1267 etc
- Mains GS Paper II: Important International institutions, agencies and fora- their structure, mandate, Role of external state and non-state actors in creating challenges to internal security etc
- India hosted 90th Interpol General Assembly followed by a special session of UN Security Council’s Counter Terrorism in October.
- Other important events:
- India will host the third edition of the “No Money For Terror” (NMFT)
- UNSC special briefing on challenges to global counter-terrorism efforts
INSIGHTS ON THE ISSUE
- Terrorism is the unlawful use of force or violence against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives.
Interlinkage between organised crime and terrorism:
Channels for flow of funds to terrorists:
- Direct smuggling of cash through international borders.
- Use of hawala networks.
- Banking networks including SWIFT and other international channels.
- Blockchain or cryptocurrencies which transcend national boundaries and international currency systems
UNSC- Counter-Terrorism Committee:(Delhi Declaration):
- Adopted the Delhi Declaration on countering the use of new and emerging technologies for terrorist purposes.
- Three themes: Continue working on recommendations on the three themes of the Special meeting.
- Terrorism financing
- Use of drones
- Non-binding principles: Develop a set of non-binding guiding principles to assist Member States to counter the threat posed by the use of new and emerging technologies for terrorist purposes.
International efforts to tackle terror financing:
- Financial Action Task Force (FATF)(1989): bringing order and implementing standards to the monetary system in the world with regard to terror finance and money laundering.
- UNSCR resolution 1267 in 1999 and UNSCR resolution 1373 in 2001: They formed the bedrock of the financial sanctions regime for terrorist organisations and
How do terrorist organisations raise money?
- Local money: Travel agencies, money changers, real estate, retail outlets, NGOs, charitable trusts and even from state sponsors.
- Derive funding from a variety of criminal activities: ranging in scale and sophistication from low-level crime to organized fraud or narcotics smuggling or illegal activities in failed states and other safe havens.
What are funds required for?
- Promote a militant ideology
- Pay operatives and their families
- Arrange for their travel
- Train new members
- Forge documents
- Pay bribes
- Acquire weapons and stage attacks.
Methods use by terrorist organisations to move money within and between organisations:
- Financial sector
- Physical movement of cash by couriers
- Movement of goods through the trade system
- Charities and alternative remittance systems
Methods used by FATF:
- Risk: It has developed its entire paradigm around the word risk.
- UNSC sanctions: It uses the United Nations Security Council sanctions against terrorists and terrorist organisations.
- Key reasons for Pakistan being placed on the FATF Grey List from 2018 to 2022: open defiance of those designations.
Challenges around modern technologies:
- The adaptability and opportunism shown by terrorist organisations: It suggests that all methods that exist to move money around the globe are to some extent at risk.
- Only accurate and well linked financial intelligence can reveal the structure of terrorist groups and also the activities of individual terrorists.
- Financial intelligence from the private sector: It has also given significant clues to foil terrorist acts.
- The UN Security Council: It has sought to increase efforts against terror financing through UN SC resolution 2462 of 2019.
- It is only through such efforts that this complex issue can be addressed.
- India’s hosting of the “No money for terror” conference: It should go a long way in focussing on the issue of state sponsored terror financing.
- Global consensus: There is global consensus on regulating the use of these emergent technologies by all responsible states, otherwise it will be hard to distinguish their use from those by designated terror entities, or state-sponsored terrorism.
QUESTION FOR PRACTICE
- Discuss the types of organized crimes. Describe the linkages between terrorists and organised crime that exist at the national and transnational levels.(UPSC 2022)
(200 WORDS, 10 MARKS)