This article has been written by Victoriya Samuvel Thanaraj, a 5th semester law student at Tamil nadu Dr.Ambethkar Law University, Chennai, Tamil Nadu. College: Government Law College, Vellore.
Abstract:
Terrorist backing poses a significant trouble to global security, challenging effective counter measures. This composition examines the part of felonious laws in combating terrorist backing, pressing their strengths and limitations. A critical analysis of transnational and public legal fabrics reveals the significance of criminalising terrorist backing, indurating means, and executing malefactors. Case studies illustrate the successes and challenges of enforcing these laws. The exploration identifies gaps in legislation and recommends advancements to ameliorate effectiveness. This study contributes to the ongoing debate on balancing security with individual rights, informing policymakers and scholars on the vital part of felonious laws in precluding terrorist backing.
Keywords: Terrorist financing, Criminal laws, Counter-terrorism, Financial regulation, Security, Anti-money laundering (AML), Combating the financing of terrorism (CFT), Financial crime,National security, International cooperation, Financial Intelligence, Law Empowerment, Asset forfeiture.
Introduction:
The theme of terrorism, which is said to be a double-edged sword, is to take away the lives of innocent people by carrying out many illegal activities such as bomb blasts, kidnappings, human bombs with the aim of disturbing the peace and sovereignty of a country. Accomplishing this theme will require a huge amount of funds. They have developed many ways to meet our financial needs like extortion, human trafficking, money laundering, fraudulent insurance companies, fraudulent money based businesses. This is called Terrorist Financing.
Realising that many lives will be lost if these routes are not blocked, the Indian government has enacted several criminal laws. These laws also create a number of mechanisms to prevent the financing of terrorist organisations or terrorist activities. This section is intended to clearly explain the immense role of Indian criminal laws in curbing the financing of terrorism.
Legislative Measures for Combating Terrorist Financing:
A wide range of laws have been enacted to curb terrorist financing that have far-reaching consequences. Following the same laws, many organisations have been created to prevent or control terrorist financing and have saved many lives. Thus some of the laws that act as a bulwark to protect Indian biodiversity,
- Unlawful Activities Prevention Act 1967
- The Illicit Trafficking in Narcotic Drugs and Psychotropic Substances Prevention Act 1988
- Money Laundering Prevention Act 2002
- National Investigation Agency Act 2008
The Prevention of Unlawful Activities Act 1967
From 1950 – 1960 many illegal activities such as Meso Insurgency, Naga Insurgency, Punjab-Sikh separatist activities took place which disturbed the peace of India. The Prevention of Unlawful Activities Act was enacted by the Government of India on 30 December 1967 with a focus on the lofty objectives of eradicating such terrorist activities, curbing terrorist financing and money laundering, suppressing separatist movements and ensuring national security.
Following are the main sections of the Act on terrorist financing.
Section 17: Terrorist financing activities means providing or collecting funds with a view to supporting terrorist activities. It includes engaging in arrangements that facilitate the execution of terrorist activities.
Section 18: Money laundering is concealing terrorist financing activities hiding or converting terrorist money. This includes knowingly possessing terrorist money.
Section 19: Suspected terrorist assets will be confiscated or frozen.
Section 43: Terrorist finance cases can be dealt with through special courts.
Section 44: The National Intelligence Agency has been empowered to investigate, search and make arrests in matters related to terrorist financing.
The Prevention of Unlawful Activities Act 1967 has undergone 4 amendments to strengthen its framework. They are,
Amendment (2004):
- Both terrorist support and fundraising for terrorism are included in terrorist acts.
Amendment (2008):
- Cyber terrorism has also been included in terrorist activities.
- Guidelines on types of terrorist organisations were introduced.
- Increased penalties for terrorist financing activities.
Amendment (2012):
- Definition of Terrorist.
- NIA’s powers to investigate terror financing cases have been enhanced.
Amendment (2019):
- Mechanisms to investigate terrorist financing cases have been strengthened.
The Illicit Traffic in Narcotic Drugs and Psychotropic Substances Prevention Act 1988
During the 1960s – 1970s, illegal drug trafficking and illegal use was very high not only in India but globally. Global attention has been paid to prevent this. And in the 1970s and 1980s, the United Nations implemented the Illicit Narcotics Control Convention along with the rest of the world to implement this focus. During the colonial period in India, laws on illicit drug trade and related terrorist financing did not have much impact. Hence the financing of terrorism through illegal narcotics trade has been done very well. This Act (Prevention of Illicit Trafficking of Narcotics Drugs and Psychotropic Substances Act) was enacted on 28 September 1988 by the Government of India after India’s independence, realising its importance.
Here are the key sections of this Act to prevent illegal drug trade and thereby raising terrorist funds, which threaten the country’s future achievers, the youth and the peace of the country.
Section 17: Prohibition of financing or providing financing for illegal drug trade.
It also includes the financing of terrorism through narcotics.
Punishment for this: 10-20 years imprisonment and 1-2 lakh fine.
Section 18: Prohibits concealment or conversion and possession of money for illicit drug transactions.
It also includes money laundering related to terrorist activities.
Punishment for this is 10-20 years imprisonment and a fine of 1-2 lakhs.
Section 21: Supporting terrorism by illicit trafficking of drugs is called as
Narco terrorism. It also includes terrorist financing through Illicit trafficking.
Punishment for this: Imprisonment (extendable to life) and fine of 1-2 lakhs.
Two amendments were brought by the Government of India to further enhance the strength of this Act to prevent drug-related terrorism. Those amendments,
Amendment (2001):
- Strengthened the penal system.
- Mechanisms were introduced to confiscate assets related to illicit drug trafficking.
Amendment (2014):
- Introduced mechanisms related to attachment of assets related to illicit drug trafficking.
Amendment (2019):
- Drug terrorism was introduced and court procedures were compiled.
Money Laundering Prevention Act 2002
Both money laundering and terrorist financing have been the talk of the town for the last 10 years. In 2000, the United Nations held a convention on Transnational organised crime. This Act was brought in on 17th January 2002 to give effect to the concept stated in the Convention in India. Its main objectives are to eliminate money laundering and terrorist financing, to implement a global approach, and to prevent financial crimes.
Some of the main sections preventing terrorist financing are:
- Section 3 : Definition of money laundering to include terrorist financing.
- Section 12 : Freezing of assets even if they are investigated as being related to terrorism.
- Section 19 : Assets related to terrorism shall be confiscated or attached.
- Section 21 : Punishment for terrorist financing – 14 years rigorous imprisonment and a fine of Rs. 5 lakh.
- Section 39 : Transactions suspected to be related to terrorism can be reported.
- Section 40 : To maintain records of all types of transactions.
The Government of India has made the following four amendments to strengthen the Act while acting as a bulwark against money laundering and terrorist financing.
Amendment (2005):
- Definition of Money Laundering Expanded Penalty Framework Strengthened Key Elements for Suspicious Transactions Introduced.
Amendment (2009):
- Mechanisms to freeze assets linked to terrorism have been introduced. Mechanisms for seizure and attachment of suspected assets have been refined.
Amendment (2012):
- Mechanisms for reporting suspicious transactions have been improved
- Banks were empowered to freeze bank accounts without any prior notice.
Amendment (2015):
- Mechanisms for cross-border attachment and seizure were introduced.
Amendment (2018):
- The central government was empowered to seize assets suspected of being linked to terrorism.
National Investigation Agency Act 2008
Terrorist financing is a global threat that poses a major obstacle to global security, stability and economic growth. India’s porous borders, vast informal economy and diverse financial systems make it vulnerable to terrorist financing. Due to the lack of separate agencies, India was facing many problems in investigating and prosecuting terrorist financing cases and to solve these problems, the National Investigation Agency Act was introduced in 2008. Its main objectives are to investigate terrorist financing cases, to intercept and destroy terrorist financing organisations, to enhance international cooperation to disrupt terrorist financing, and to protect the Indian financial system from misuse by terrorists. The National Agency created by this Act acts as an autonomous body to investigate terrorism cases. It also has international powers to investigate terrorist financing cases. The Act provides for the trial of terrorist financing cases through special courts.
Thus the key sections of the Act create a separate body to monitor terrorist financing and terrorist activities.
- Section 15: The National Agency is empowered to prosecute and investigate terrorist financing cases.
- Section 17: Empowers to freeze, seize and seize property connected with terrorism and terrorist financing.
- Section 18: Empowers to institute and investigate cases of money laundering related to terrorism.
- Section 20: Empowers individuals to issue summons and summon specified individuals in person in connection with terrorist financing.
As the National Agency based on such units functions as an autonomous body, quick decisions are taken and due to its smooth functioning, many terrorist financing channels have been eradicated. Millions of assets are frozen and the National Intelligence Agency is working with a number of international agencies with the aim of preventing global terrorist financing.
The Act, which created the National Intelligence Agency, has faced four amendments . We will make the most important amendments which gives more powers to the NIA regarding terrorist financing.
Amendment (2019):
- Extended the jurisdiction of the National Agency to investigate cyber-terrorist financing.
- Empowers seizure of cyber-terrorist financial assets.
- The National Agency may use digital systems to initiate and prosecute cases related to terrorist financing.
Amendment (2021):
- Extends the jurisdiction of the National Intelligence Agency to investigate terrorist financing cases internationally.
- Provides international powers to freeze and seize assets associated with terrorist financing.
- The National Agency can investigate and prosecute international terrorism cases in connection with international legal assistance treaties.
Combating Role of Criminal Laws:
The Indian government has effectively curbed the spread of terrorist financing in India by enacting such sweeping laws. These laws are considered as a pioneering step against global extremism not only in India but also in the world arena.The impact of such laws on terrorist financing and terrorist activities can be seen.
- Terrorist financing and terrorist activities were added to the criminal list and measures were compiled to confiscate terrorist-related assets.
- Definitions of terrorists and terrorist organisations are provided.
- The penalty framework for terrorist acts and terrorist activities has been enhanced, thereby greatly affecting terrorist financing.
- Regulates the manufacture and distribution of narcotics and prohibits their illegal distribution.
- All of these regulate the metabolism and production of drug-forming chemicals.
- Seeks international coordination to curb narco-terrorism.
- Penalties such as fines and confiscation of property for raising terrorist funds through the illegal transfer of narcotics are provided.
- Efforts have been made to investigate cases of money laundering and thereby curb terrorist financing related to them. Financial institutions are formed and regulated and reports are maintained for urgent financial transactions.
- Precautionary measures have been taken to eliminate all forms of terrorist financing through money laundering.
- A number of bodies have been created to prevent terrorist financing and the National Agency has been given powers to investigate cases of terrorist financing with a very wide jurisdiction. Also linkages are maintained with various international agencies to combat terrorist financing globally.
- The security of the country is ensured by setting up special courts to prosecute and try cases of terrorist activities and terrorist financing that affect the sovereignty and security of the country and to deal with these major crimes and seditions and deliver judgments promptly.
Conclusion:
The part of felonious law in combating terrorist backing in India is vital. This study has demonstrated that effective felonious laws and regulations can significantly disrupt and discourage terrorist backing conditioning. India’s sweats to strengthen its legal frame have yielded positive results, but challenges persist. Complex terrorist backing networks, shy transnational cooperation, and evolving fiscal technologies bear nonstop advancements. To enhance the effectiveness of felonious laws, this study recommends
- Enhancing transnational cooperation and information sharing.
- Strengthening fiscal regulation and oversight.
- Perfecting investigative and prosecutorial capacities.
- Enforcing effective asset penalty and confiscation mechanisms.
Eventually, India’s success in combating terrorist backing depends on amulti-faceted approach, combining effective legislation, robust enforcement, and sustained transnational cooperation.
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