Discuss counterfeit currency and money laundering as major sources of terror funding in India. State the actions being taken at International level to check these menaces. Highlight the role of Financial Action Task Force (FATF) and methods of compliance by its member states in preventing terror funding.

(1) Hawala, Dark Net, Smuggling, fake currency a) FICN Coordination Group for Intelligence Sharing b) Terror funding and fake currency cell under NIA.

(2) State-sponsored terrorism a) Smart Walls and Smart Border Management b) NIA as federal agency.

(3) Domestic sources - Indoctrination, narcotics money, etc

a) NDPS Act and establishment of Narcotics Bureau

b) Amendment to UAPA Act in 2020.

(4) Fake currency

a) Use of hologram and other technologies in currency notes

b) Digitisation

c) Demonetisation

(5) Foreign Trusts like Al-Rashid and Rabita Trust of Islamabad

International efforts include:-

1. Membership of SCO - 3 evils - extremism, terrorism and separatism
2. Membership of FATF (Financial Action Task Force) Against terror funding, money laundering and weapons of Mass Destruction
3. Efforts at UN and other fora against terrorism
4. UNSC Resolution 2322

Institutional mechanisms back home:

1. Revamped Multi Agency Centre (R-MAC)
2. NATGRID
3. Amendments to UAPA, NIA Act
4. FICN coordination Group.
5. Terror funding cell in NIA
6. NIA, National Security Guard
7. Coast