Give out the major sources of terror funding in India and the 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.

Terrorism is defined as systematic use of violence to create a general climate of fear to attain a political objective and for this purpose it needs financing for recruitment, planning and executing their vicious activities.

Sources of terror funding can be both external or internal:

• Religious Donations: Such as zakat, also contributes to terrorism financing, with some of it finding its way into terrorist activities in countries like India.
• Radical Charities: Radical charities persist, such as Jamaat ul-Dawa and LeT in Pakistan.
• Remittances: Indian extremist groups receive foreign remittances, notably from the Gulf, raising concerns.
• Counterfeiting of Currency: Pakistan uses counterfeit Indian currency, sourced both domestically and internationally, to fund various terrorist groups.
• Narco-Finance: Drug trafficking, primarily from Afghanistan, provides substantial financing.
• State Sponsorship: Pakistan’s ISI directly funds terrorism in India, with ISI utilizing various sources, including charities, NGOs, drug trafficking, zakat donations, and counterfeiting
• Internal Sources: Historically, terrorism funding within India relies on illegal finances. Extortion, taxation, and crime and from over ground workers in areas. 

India has implemented a multifaceted approach to combat terrorism financing:

• The Prevention of Money Laundering Act, 2002, focuses on preventing and controlling money laundering, with the Financial Intelligence Unit (FIU-IND) receiving reports on suspicious transactions. 
• The Enforcement Directorate investigates money laundering offenses and coordinates internationally. 
• Special units, such as the Combating Financing of Terrorism (CFT) Cell and Terror Funding and Fake Currency Cell, address terror funding cases.
• Amendments to the Unlawful Activities (Prevention) Act in 2013 expanded its scope.
• India is also a member of international bodies like FATF, EAG, and APG. Demonetization has been used as a tool but isn’t a comprehensive solution

In this regard, NMFT conference was organized recently in India which:

• Differentiated b/w fighting terrorist and terrorism: The fight against terrorism differs from fighting individual terrorists. Terrorism involves a network of individuals, necessitating a proactive, systemic response. 
• Condemned State sponsored terrorism: State support for terrorism is a significant issue, and countries backing terrorists must face consequences. 
• Organized Crime nexus: Organized crime as a source of terror funding, emphasizing the need to combat it.
• Role of International institutions: like the UN Security Council, FATF, and technology play crucial roles was recognized. 
• Emerging areas: Cyberterrorism was recognized as emerging area.

Thus, a common approach to counterterrorism, through international coordination and joint operations, is essential to prevent misuse of legal differences was broadly agreed upon.