India becomes hub for supplying funds to terrorists

India has become a hub for supplying funds to terrorists under ‘hundi and Hawala’ money transfer system. A private TV channel quoting US Foreign Affairs Department reported that the US has asked India to make effective legislation for anti-money laundering and to stop supplying capital to terrorists.

To become of a regular member of international policy making institutions financial action task force India must also take concrete steps to curb the menace of illegal transfer of money to terrorists.

The report urged India to adopt affective strategy on priority basis for supporting international efforts to make the system transparent working parallel to legal system keeping in view the increasing incident of terrorism in India and supplying funds to them.

According to US foreign affairs department, Reserved bank of India said that during 2007-08, India received remittances of 42.60 billion (BB) dollars through legal system. —APP The US, which has linked hawala money to terror financing, said India should fortify its legislations that deal with money laundering and terror financing. The report said the hawala system provided the same kind of remittance service as a bank with no documentation, lower rates and faster delivery. It also provided anonymity and security for the customers, the report added.