After the Pulwama attack of 14 February 2019, Pakistan has come under the international scanner for its support and financing of terrorist groups. At a meeting of the Financial Action Task Force (FATF) in Paris last week, it was pulled up for its inability to choke terrorist financing. This primer illustrates the role of the FATF in tackling terrorist financing and money-laundering, and studies its recent review of Pakistan
Border regions and communities, some of them far from the heartland, constitute India’s first line of defence, a critical link in its national security. India’s 15,000-km borders touch seven neighbouring countries: Afghanistan (abutting Gilgit), Pakistan, Nepal, Bhutan, China, Bangladesh, Myanmar. Border regions have their own local dynamics, often shaped by subnational and religious identities that do not necessarily align neatly with political borders. Some also serve as flourishing corridors for illegal smuggling of goods and humans. Technology plays an important role in better protecting borders, but in some cases it has made borders obsolete. Despite their importance, border regions do not receive the full attention of the Indian mainstream, except when border tensions arise.
On November 8, when Prime Minister Narendra Modi announced to India, the demonetisation of high-value currency notes, he specifically referred to the use of Hawala and fake Indian currency notes for terrorist financing. The hawala system to move funds globally for terrorist financing is huge, secretive, and layered—and a challenge for national security agencies.