India's Firm Stance Against Terror Financing Strengthened at 4th NMFT Conference

The National Intelligence Grid (NATGRID) has been developed as an advanced IT platform to assist intelligence and law enforcement agencies in countering terrorism threats efficiently.

India has reaffirmed its commitment to global security and emphasized the importance of international unity in combating terrorism at the 4th No Money for Terror (NMFT) Conference. The nation highlighted its concerns regarding the increasing cross-border linkages in terror financing and the growing complexity of asset transfers due to advancements in digital technologies. India reiterated its steadfast stand with the global community in the fight against terrorism.

Strengthening Legal and Institutional Frameworks

To counteract terror financing, India has significantly bolstered its intelligence and legal frameworks. The government has:

• Enhanced intelligence capabilities to collect, analyze, and disseminate real-time information.
• Strengthened the legal framework by amending the Unlawful Activities (Prevention) Act, 1967 and the Prevention of Money Laundering Act, 2002.
• Established a Terror Funding and Fake Currency (TFFC) Cell within the National Investigation Agency (NIA), along with three specialized verticals focusing on Cyber Terrorism, Explosives and Prohibited Arms, and Human Trafficking.
• Created the Fake Indian Currency Note Coordination Centre (FCORD) under the Ministry of Home Affairs to facilitate intelligence-sharing among central and state security agencies to curb counterfeit currency circulation.

Regulatory Oversight and Financial Monitoring

The Reserve Bank of India (RBI) oversees the regulatory aspects of the financial ecosystem, while the Financial Intelligence Unit-India (FIU-IND) plays a crucial role in detecting and reporting suspicious transactions. Key initiatives include:

• Red Flag Indicators (RFIs): Guidelines developed to detect and report suspicious financial activities.
• Permanent Working Group on Terror Financing Identification: A multi-stakeholder body involving representatives from law enforcement agencies, financial institutions, social media platforms, and crowdfunding entities.
• Seizure and Forfeiture of Assets: Amendments to the UAPA and NIA Act, 2019 have strengthened asset seizure, attachment, and forfeiture mechanisms.

Addressing Virtual Digital Asset Risks

Recognizing the risks posed by Virtual Digital Assets (VDAs) such as cryptocurrencies, the Department of Revenue has brought Virtual Digital Asset Service Providers (VDA SPs) under the Prevention of Money Laundering Act (PMLA) 2002. The obligations include:

• Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance.
• Know Your Customer (KYC) protocols, Client Due Diligence (CDD), and Enhanced Due Diligence (EDD).
• Sanctions screening, transaction monitoring, and periodic risk assessments.

Enhancing Intelligence and Law Enforcement Cooperation

The National Intelligence Grid (NATGRID) has been developed as an advanced IT platform to assist intelligence and law enforcement agencies in countering terrorism threats efficiently. Through continued participation in NMFT Conferences since 2018, India's strategic approach to Combating the Financing of Terrorism (CFT) has improved significantly, fostering enhanced coordination among agencies and strengthening law enforcement efforts.

With these reinforced measures, India continues to take a proactive role in countering terror financing, supporting global security, and adopting targeted strategies to combat emerging threats.

This statement was provided by the Minister of State in the Ministry of Home Affairs, Shri Nityanand Rai, in a written reply to a question in the Rajya Sabha.