Funding is the lifeblood of terrorism. The “No Money for Terror” conference was started in 2018 by the French government, to enhance cooperation between countries to choke terror funding.
As per FATF Report‘Comprehensive Update on Terrorist Financing Risks’, the major sources of terror funding include
Traditional Methods
Hawala Networks – Informal money transfers bypassing banks.
State-Sponsored Funding – Eg- Pakistan’s ISI financing LeT and JeM operations in India.
Narco-Terrorism – Eg- Heroin smuggling via Punjab linked to terror networks.
Counterfeit Indian Currency (FICN) – Fake currency to fund operations and destabilise economy.
Extortion and Illegal Levies – Eg- Maoist levies on mining contractors in Chhattisgarh.
Charities and NGO Fronts – Eg- PFI-linked organisations routing funds for radicalisation.
Organised Crime Nexus – Eg- Arms and timber smuggling in Northeast India.
Emerging Methods
Social media – used to promote donation campaigns and share payment instructions, including wallet addresses.
Cryptocurrencies and Virtual Assets – Eg- Bitcoin wallets.
Encrypted Payment Apps and E-Wallets – Eg- PayPal
Dark Web Transactions – Anonymous marketplaces for funds, weapons and logistics.
Gaming Platforms – Eg- EoRMT organisations, Hezbollah, creating and selling their own video games
Microfinancing models utilized by lone actors – through small, legitimate sources of income.
Efforts made to curtail these sources
India has declared zero tolerance towards terror financing and money laundering
Legal measures – Unlawful Activities (Prevention) Act and Prevention of Money Laundering Act (PMLA) are used to designate individuals and seize funds linked to terrorism.
Institutional measures – National Investigation Agency (NIA) investigate terror funding, while the Enforcement Directorate (ED) pursues money-laundering cases.
The Financial Intelligence Unit (FIU-IND) tracks and analyses suspicious financial transactions and shares data with law-enforcement.
Specialised units such as the Terror Funding and Fake Currency (TFFC) Cell focus on disrupting terror finance links.
India collaborates with bodies like Financial Action Task Force (FATF) and Egmont Group to share intelligence and align standards against terror financing.
Monitoring of NGOs for FCRA compliance. Eg- Ban on NGOs linked to Zakir Naik
Promotion and Regulation of Online Gaming Act (PROGA) 2025 – bans all real-money online gaming (RMG), including games of skill
National Intelligence Grid (NATGRID), has been created as an IT platform to assist the intelligence and law enforcement agencies.
Aim and Objective of the ‘No Money for Terror (NMFT)’ Conference
Global Cooperation on Terror Financing
Focus on Trends in Terror Funding – Deliberations focused on formal and informal channels, and the evolving methods of terror finance.
Regulating and countering use of Emerging Technologies like cryptocurrencies and digital platforms for terror financing
Mobilise resources to enable LDCs and developing countries to counter terror financing
Enhance information sharing, harmonise legal measures, and bolster mutual assistance between countries to intercept and prosecute terror financing.
India stressed a uniform and zero-tolerance approach to terrorism and its financing, rejecting distinctions between “good” and “bad” terrorism.
NMFT 2022 built on earlier conferences (Paris 2018, Melbourne 2019) to maintain continuity and momentum in international action against terror finance.
“Money is the oxygen of terrorism. Cut the oxygen, and you suffocate the threat.” – Antonio Guterres, UN Secretary-General