India plans to put in place a network to track terror money. The financial intelligence network, to be operational by March'09, has been named Project Finnet.
India plans to put in place a network to track terror money. The financial intelligence network, to be fully operational by March 2009, has been named Project Finnet. Ernst & Young will set it up, sources said. There was no response from the company when DNA tried to contact it.
All banks, brokers in the securities market, and mutual funds will get a common technology platform to detect suspicious transactions. Some kind of software will be developed for the purpose and phase 1 will be ready by December.
According to a Dow Jones-Reuters report, 3-4% of the dirty money coming into India is used for funding terror. An Intelligence Bureau note says fake currency from Pakistan is a growing menace. Hawala transactions and private money transfer companies are the main channels for terror funds, intelligence sources say.
Terror financing will be on top of the agenda at the annual conference of directors general of police to be held here from October 3.
Subversive outfits operating through sophisticated cartels to manipulate stock markets could cause economic disruptions, the Intelligence Bureau (IB) warns in a note, suggesting police must monitor banking frauds.
The suggestions include improvements in money laundering Act , better logistical support for police organisations, better raining and smoothening inter-agency operations. This aspect of tackling terrorism was highlighted by national security adviser MK Narayanan at the 43rd Munich conference on security policy in February when he spoke of instances of terrorist outfits manipulating the stock markets to raise funds for their operations. “Stock Exchanges in Mumbai and Chennai have reported that fictitious firms were engaging in stock-market operations. Some of these firms were later traced to terror outfits,” he said. Finance minister P Chidambaram recently denied it was happening.
The threat remains. Security agencies alerted the government and the Securities and Exchange Board of India on investment by a Saudi businessman, with alleged links with Osama bin Laden, in Indian companies through the stock market. India has joined the International Convention for Suppression of Financing of
Terrorism.
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