Q2.Give out the major sources of terror funding in India and efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the ‘ No Money for Terror [NMFT]’ Conference recently held at New Delhi in November 2022.

Terror funding fuels extremist activities, destabilizes nations, and undermines economic stability. India faces significant challenges from various illicit financial flows that sustain terrorism, necessitating robust countermeasures.

• Illicit Trade: Drug trafficking, counterfeit currency, and smuggling provide substantial funds.
• Organized Crime: Extortion, kidnapping for ransom, and cybercrime are increasingly used to generate revenue.
• Legitimate Channels: Misuse of charities, hawala networks, and front companies to launder funds.
• State Sponsorship: Covert support from hostile state actors remains a critical source for various terror outfits.

• Legal Frameworks: Robust laws like the Unlawful Activities (Prevention) Act (UAPA) and Prevention of Money Laundering Act (PMLA) provide legal teeth.
• Institutional Mechanisms: Agencies such as the National Investigation Agency (NIA), Enforcement Directorate (ED), and Financial Intelligence Unit-India (FIU-IND) actively investigate and prosecute.
• Strategic Measures: Enhanced intelligence sharing, stringent border management, and international cooperation are crucial for disruption and prevention.

• Aim: To foster global consensus against terror financing, share best practices, and collectively address emerging threats.
• Objectives: Strengthen international cooperation, enhance information exchange, and improve legal and regulatory frameworks to effectively combat terror financing. It also focused on countering new methods like crowdfunding and virtual assets. India's role in advocating for a unified global approach and adherence to FATF standards is crucial.

Combating terror financing requires a multi-pronged, coordinated global strategy. India's proactive leadership, coupled with strengthened domestic mechanisms and international partnerships, is vital for global security and stability.