Subject: Organized Crime and Terrorism

Recently, MHA has declared ‘Jamaat-e-Islami Jammu Kashmir (JeI)’ as an ‘Unlawful Association’ under Section 3 of the Unlawful Activities (Prevention) Act, 1967.

Role played by OGWs

Intelligence Gathering – provide real-time information on troop movement, patrol timings and security vulnerabilities.

Logistical Support – arrange shelter, vehicles, food, medical aid and safe houses for militants to evade detection.

Radicalisation and Recruitment through religious networks, student groups and social media.

Terror Financing – raise funds locally, manage extortion, run front organisations and facilitate hawala transfers.

Facilitating Arms Movement – OGWs act as couriers, store arms, and help smuggle weapons across borders or LoC. Eg- collecting drone-dropped arms.

Information Warfare – They generate pro-terror content, circulate videos and organise protests to delegitimise the state.

Maintaining Militant-Local Community Linkages- create public sympathy for militants, and organise funerals or protests to build support. Eg- funeral of Burhan Wani

Measures to Neutralise the Influence of OGWs

Intelligence and Policing Measures

Integrated Intelligence Grid (IIG) – Real-time coordination between police, IB, NIA and security forces to identify OGW networks.

Use of Technology for Profiling – AI-based monitoring of suspicious financial transactions, travel patterns and digital communication.

Strengthening Local Police and Community Intelligence – Eg- Village Defence Groups in Rajouri-Poonch.

Tightening Border Surveillance – Use of drones, sensors, and night-vision to check infiltration and OGW courier routes.

Legal and Institutional Measures

Action through UAPA & NIA Act – Freezing bank accounts and shutting down front organisations.

Regulating NGOs, Religious Networks – Eg- FCRA audits of charity organisations

Community and Preventive Measures

De-radicalisation and Counselling of youth

Heart and mind strategy – Eg- Operation Sadbhavana (Goodwill) of Indian Army

Employment and Skill Development to mainstream youth. Eg- Udaan Scheme

OGWs are the backbone of insurgency. A multi-layered approach is needed to break the support ecosystem of terrorism.

As per Bruce Hoffman, “Terrorism is the deliberate creation and exploitation of fear through violence or the threat of violence in the pursuit of political change.”

Complexity of Terrorism

Absence of a universally accepted definition makes global consensus and coordination difficult.

Multi-actor nature – Involves state-sponsored, non-state, proxy and lone-wolf actors

Decentralised structure limits traceability. Eg- lone wolf attacks

Transnational character – Funding, training, ideology and operations span across borders.

Technological sophistication increases operational complexity. Eg- Use of encrypted communication, drones and digital finance.

Intensity of Terrorism (Global Terrorism Index 2025)

Over 8,000 terrorism-related deaths globally (2024)

Islamic State (IS) expanded its operations to 22 countries

Terrorist attacks jumped by 63% in the West

India witnessed Pahalgam terrorist attack in 2025

High psychological impact

Causes of Terrorism

Political Causes

Political instability – Weak or exclusionary governance fuels extremism. Eg- in Syria

Ideological radicalisation through identity and grievance politics. Eg- ISIS

State repression – Eg- Militant recruitment in Kashmir exploiting allegations of rights abuses.

Socio-Economic Causes

Poverty and unemployment Create fertile ground for recruitment. Eg- in Palestine (Hamas)

Inequality – Disparity between haves and have-nots fuels resentment.

Regional underdevelopment and ‘Governance vaccum’- Eg- Insurgency in India’s Northeast

Geopolitical Causes

Proxy warfare and state sponsorship – Eg- Pakistan’s policy of bleeding India by thousand cuts

Regional conflicts – Eg- Iran’s support “Axis of Resistance” including Lebanon’s Hezbollah, Yemen’s Houthis.

Technological and Global Factors

Online radicalisation – Eg- Use of Telegram and encrypted platforms by terror outfits.

Ease of connectivity and funding – Eg- Hawala networks financing terror modules in India

Linkages and Obnoxious Nexus

Terrorism-Organised Crime Nexus – Eg- role of D-Company in 1993 Bombay blast

Terrorism-Narco Nexus – Drug trade finances terror operations and insurgency.

Terrorism-Religious Extremism Nexus for recruitment and legitimacy.

Terrorism-Cyber Nexus – Use of social media and encrypted platforms for propaganda

Terrorism-State and Non-State Actor Nexus. Eg- Pakistan’s support to LeT and JeM

The zero tolerance against terrorism strategy needs 6-fold approach

Robust counter-terror legal framework – Swift investigation, prosecution and conviction.

Strengthening HUMINT (Human Intelligence) and TECHINT (Technological Intelligence).

SMART Borders (Madhukar Gupta Committee)

Raising cost of terrorism for Pakistan. Eg- Operation Sindoor

Human-centric Counterinsurgency

International Cooperation – Intelligence sharing, financial sanctions and diplomatic pressure on sponsors of terrorism. Eg- FATF Grey Listing

Thus a holistic strategy is needed for ‘Terror free world’.

Role of External State and Non-state Actors

As per UNODC, organized crime is a continuing criminal enterprise that rationally works to profit from illicit activities that are often in great public demand.

Types of Organised Crime

Drug Trafficking (Narco-Trade)- Eg- Recent high-volume seizures of “Meth” in the Arabian Sea via the Makran Coast route.

Illicit Arms Smuggling- Eg- The use of “Payload Drones” in Punjab to transport pistols and grenades from across the border.

Human Trafficking- Forced labor and sexual exploitation. Eg- syndicates trafficking Indians to Southeast Asian “Cyber-Slavery” hubs.

Money Laundering- The process of “cleansing” criminal proceeds. Eg- Use of Layering techniques via Shell companies and Virtual Digital Assets (Crypto).

Cybercrime (Crime-as-a-Service)- Eg- The 2024 surge in “Digital Arrest” scams operated by transnational gangs.

FICN (Counterfeiting)- Smuggling Fake Indian Currency Notes to trigger monetary instability.

Contract Killings & Extortion- Use of violence to “tax” businesses. Eg- Bishnoi gang

Environmental Crime- Eg- Illegal Red Sandalwood trade in the Seshachalam forests.

National Level Linkages (Operational & Tactical)

Infrastructure Sharing- Terrorists use established criminal “rat-lines” for the clandestine movement of personnel. Eg- use of drug networks for terrorist infiltration in J&K

Logistics support – Eg- D-Company’s role in 1993 Bombay Blasts

Resource Appropriation- Terror groups adopt criminal tactics like “Tiger Kidnapping” (kidnapping for ransom) to create immediate liquidity.

Corruption of Local Governance- Both groups collaborate to “buy” local administrative silence, creating pockets of lawlessness.

Transnational Level Linkages (Strategic & Financial)

Narco-Terrorism- Terrorist groups taxing or controlling drug trade routes to finance global jihad. Eg- The Taliban using opium revenue from Afghanistan to fund operations.

Global Hawala Networks- Terror funding is moved across borders using the same illegal financial networks established by crime syndicates.

The “Black Hole” Effect- In “gray zones,” criminal and terror groups merge into a single entity. Eg- ISIS-K using illegal mining of talc to fund global operations.

Specialized Alliances- Terrorists outsource technical needs to professional transnational syndicates. Eg- use Dark Net markets by LeT to receive “anonymous” donations.

Transnational crime acts as a tool of “Grey Zone Warfare” by hostile neighbors to destabilize the economy via drug-pushing.

Diversion of humanitarian aid in conflict zones (Sahel, Middle East) into the hands of organized terror groups via criminal intermediaries. (FATF report)

The Crime-Terror nexus creates Black Hole of instability. Addressing this requires Whole-of-Government approach.

Cyber Security

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

The “Hearts and Minds” approach in counter-terrorism is a strategic doctrine that emphasizes building trust, and popular support within local populations to defeat terrorist movements.

Importance of Hearts and Minds

Prevention of Radicalization by deligitimising terrorism

Community Intelligence Gathering

Reducing Support for Terrorist Activities

Enhanced Legitimacy of the State – state as ‘development partner’ rather than ‘occupying force’

Long-Term Stability and Peace as ‘residual anger’ is addressed

Measures adopted by the Government

National integration through abrogation of Article 370

Operation Sadbhavana – Army-led goodwill initiatives focusing on education, healthcare and youth engagement.

Civic Action Programme (CAP) – Police and CAPFs hold public meetings, sports events and grievance redress camps. Eg- Jan Sampark melas

Skill development, entrepreneurship push – Eg- Mission Youth and Himayat

Social infrastructure development – Eg- IIT and AIIMS in jammu

Connectivity initiatives for tourism promotion. Eg- Chenab Bridge, and running Vande Bharat trains

De-radicalisation Centres – Counselling sessions for first-time offenders.

Surrender and Rehabilitation policy for former militants through financial assistance, education and job support.

Targeted Security Approach – Eg- Focus on OGWs and hybrid militants without mass crackdowns.

Community Policing – Eg- Village Defence Groups in Rajouri-Poonch.

For long-term peace and stability in the region 4-pronged stategy is needed

Strengthening HUMINT (Human Intelligence) and TECHINT (Technological Intelligence).

SMART Boders (Madhukar Gupta Committee)

Raising cost of terrorism for Pakistan. Eg- Operation Sindoor

Human-centric Counterinsurgency

Narco-terrorism refers to the use of drug trafficking and narcotics trade to finance terrorist and insurgent activities. In India, it has emerged as a serious challenge due to porous borders, regional instability and rising drug demand.

Narco-Terrorism as a Serious Threat in India

India lies between the Golden Crescent and Golden Triangle, making it vulnerable as a transit and destination country.

Nexus between Terror Groups and Organised Crime to move drugs and launder money.

Destabilisation of Border States– Eg- Rising drug addiction and arms recovery in Punjab.

Use of Advanced Technology– Eg- Drone-based drug and arms drops across the Punjab border.

Threat to Youth and Social Fabric – Eg- as per AIIMS report, 15.4% of Punjab’s population was engaged in some form of substance use (over 3 million people)

.

Maritime security concerns –

Measures to Counter Narco-Terrorism

Strengthening Border Management – Enhance surveillance, fencing, anti-drone systems and coastal security.

Integrated Intelligence – Seamless coordination among NIA, NCIB, ED, DRI, state police and intelligence agencies.

Targeting Financial Networks – Crackdown on money laundering, hawala and benami assets linked to drug trade.

International Cooperation – Cooperation under FATF framework and bilateral mechanisms.

Legal and Institutional Strengthening – Swift prosecution under Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985

Technological Solutions – Use of AI, data analytics and drone monitoring to track trafficking routes.

Fast track implementation of National Action Plan for Drug Demand Reduction (NAPDDR) and Nasha Mukt Bharat Abhiyaan (NMBA)

Community Policing – Involve border communities in intelligence gathering.

A multi-pronged strategy under zero tolerance for narcotics is essential to dismantle the narco-terror ecosystem and ‘Nasha Mukt Bharat’.

As per Bruce Hoffman, “Terrorism is the deliberate creation and exploitation of fear through violence or the threat of violence in the pursuit of political change.”

Terrosim as a global scourge (Global Terrorism Index 2025)

over 8,000 terrorism-related deaths globally (2024)

Islamic State (IS) expanded its operations to 22 countries

Terrorist attacks jumped by 63% in the West

India witnessed Pahalgam terrorist attack in 2025

Manifestations of Terrorism in India

State-Sponsored Terrorism – Pakistan-backed groups like Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen.

Insurgency in Jammu & Kashmir – Radicalisation, infiltration, and hybrid terrorism

Left-Wing Extremism (LWE) – Naxalite-Maoist insurgency in ‘Red Corridor’

Ethno-Nationalist Militancy in the N-E – Insurgent groups like ULFA (Assam), NSCN (Nagaland).

Urban & “Lone-Wolf” Terrorism – Eg- Recent Delhi Blast

Narco-Terrorism along Golden Traingle and Golden Crescent

Financing of Terrorism – Use of Hawala, Fake Currency, NGOs, and Cryptocurrency

Digital and Cyber-Terrorism – Online recruitment, fundraising and encrypted communications.

Counter-Measures Adopted by the State

Legislative Measures

UAPA, 1967 – empowers State to designate individuals as terrorists.

NIA Act, 2008 – established National Investigation Agency with nationwide jurisdiction.

PMLA, 2002 – to curb money laundering and terror financing.

Institutional Mechanisms

National Security Council Secretariat headed by the NSA for inter-agency coordination

NATGRID and Multi-Agency Centre for real-time intelligence sharing and coordination

Operational Measures

Operation Sindoor, Surgical Strikes (2016) and Balakot airstrikes (2019) as deterrence.

Operation All-Out in J&K to neutralize militants.

Border & Internal Security Measures

Fencing and electronic surveillance along the Indo-Pak and Indo-Bangladesh borders.

Use of drones, radars, and thermal imaging to detect infiltration.

Community Engagement

De-radicalisation programmes in J&K.

Heart and mind strategy – Eg- Operation Sadbhavana (Goodwill) of Indian Army

Employment and Skill Development to mainstream youth. Eg- Udaan Scheme

International Cooperation

Active role in FATF to blacklist terror-financing states.

UN sanctions listing of terrorists like Masood Azhar and Hafiz Saeed.

The zero tolerance against terrorism strategy needs 4-pronged approach

Strengthening HUMINT (Human Intelligence) and TECHINT (Technological Intelligence).

SMART Borders (Madhukar Gupta Committee)

Raising cost of terrorism for Pakistan. Eg- Operation Sindoor

Human-centric Counterinsurgency