Re: Internal Security Watch
Posted: 03 Apr 2013 01:58
Terror finance- Why the 300% jump? April 1, 2013 1 0 Rate This
In the year 2009, the number of terror financing cases were recorded at 200. However in the year 2012 this figure saw a phenomenal jump to 1400 cases. This is the statistic that has been put out by the Financial Intelligence Unit in India.
This massive jump in the number of such cases is only an indicator as to how well terror groups have channelized their resources and with each passing day they have been finding ways to beat the Indian agencies.
When the FIU had put out a report in the year 2009 with the help of the RAW and also the Intelligence Bureau, it had stated that the ISI in Pakistan manages to raise Rs 1800 crore annually to fund terrorist activities especially against India. Today the Intelligence units say that the amount has shot up to Rs 2400 crore as the intensity of their programme against India too is expected to see a rise.
The ISI is known to deploy various tactics in order to raise funds for terror financing. They have adopted to circulating fake Indian currency in a big way. While fake currency has been a major draw for the ISI, they also ensure that a certain amount of money through hawala transactions, extortions and also funds earned through drug trade is handed over to them.
As per the latest report of the FIU, there have been 1444 cases of terror financing last year. In the year 2011 there were 428 cases reported while in the year 2010 it was 316.
Sources in the Intelligence Bureau tell rediff.com that out of the 1444 transactions that have been reported, almost 65 per cent of the cases are related to fake currency. Last year there were around 320000 fake notes in the denomination of Rs 500 and Rs 1000 were found while the year prior to that there were around 250000 such notes that were found. Now these are notes that have been detected in the banks and sent to FIU. This figure does not include the other notes which are in circulation in the market.
Sources say that while fake currency accounted for a major chunk of the share, it was hawala which was next. Hawala transactions have accounted for at least 30 per cent of terror financing. It has been noticed that in almost every hawala deal, 10 per cent of the amount goes towards terror funding. The biggest hawala transactions have been found from the Gulf directly into Kerala. Proof of such transactions being used for terror related activities was found during the 2006 train bombings in which an amount of Rs 4.5 lakh was handed over to execute the attack. Since that incident, hawala transactions have become a common factor in terror related activities. Money has been sent in from the Gulf for specific operations. The Indian Mujahideen in particular has a dedicated network through which it collects money at Delhi. The money is wired from Gulf into Kerala and then to New Delhi.
The rest of the terror financing comes in through extortion and drug deals, sources point out.
In addition to terror financing, the Intelligence Bureau is also probing the sudden rise in suspicious transactions. The year 2012 saw 69000 such cases when compared to the 20000 cases the previous year. Intelligence sources say that these transactions are under the scanner and are being probed. This could do with black money or transactions by some elements trying to park their money in banks. We have told all banks to maintain due diligence and report such matters immediately so that the probe can be easier.