Global effort needed to stem flow of funds to terrorists: Narendra Modi2 min read . Updated: 02 Dec 2015, 02:36 AM IST
Modi stresses need for a global effort to disrupt the flow of funds to terror groups by putting in place 'targeted economic sanctions and systemic safeguards'
New Delhi: Prime Minister Narendra Modi on Wednesday stressed the need for a global effort to disrupt the flow of funds to terror groups by putting in place “targeted economic sanctions and systemic safeguards" based on credible counter-terrorism intelligence, saying this would restrict the capabilities of terrorists to carry out attacks.
While referring to the terror strikes in Paris at a global conference organized by the Central Bureau of Investigation (CBI) on asset recovery, anti-corruption and vigilance, Modi said the “dastardly acts" committed in Paris were a grim reminder that terrorists have shown remarkable flexibility and adaptability in meeting their funding requirements.
“They derive funding from a variety of criminal activities, which include smuggling of narcotics, bank robbery, vehicle theft, fake currency, or from state sponsors and activities in failed states. Globalization of organized crime poses a major threat to economies throughout the world. It is a well-known fact that dirty money drives out good money. Organized crime can hamper investment and economic growth. It can also infiltrate or acquire control of large sectors of the economy. Illicit funding promotes organized criminal activities like drug, arms and human trafficking, as well as terrorism. Targeting proceeds of crime is an important element in this fight against crime," the Prime Minister said.
Modi reiterated his government’s commitment to implementing a uniform global standard on automatic exchange of information on a reciprocal basis as this would enable it to track people who have concealed their money in offshore financial centres and tax havens.
Economic liberalization and globalization, Modi said, had drastically increased people’s ability to park profits of crime anywhere in the world.
“Today, proceeds of crime can be routed through dozens of countries within seconds. By a process of layering, the money trail can be concealed. Investigation agencies are limited by national boundaries," he said.
While asserting that his government was unsparing in punishing the corrupt, Modi said 45 senior officers from various services had either been removed or faced pension cuts for unsatisfactory performance.
He added that while the government was committed to ensuring probity among public servants, it would also protect them from frivolous allegations.
“Our recent initiatives to curb systemic corruption such as auction of coal blocks and FM radio spectrum have eliminated the element of discretion in allocation of national resources. This has brought about transparency in the system and restored the faith of citizens in the government. It has also generated substantial revenues for the government which will benefit the people," the Prime Minister said.
Modi highlighted the steps taken by the government to check corruption and black money.
He said the centre had entered into agreements with many countries for exchange of real-time information on black money and had signed the Inter-Government Agreement with the US to implement the Foreign Account Tax Compliance Act.
This agreement enables Indian tax authorities to receive financial account information of Indians from foreign countries on an automatic basis.
A comprehensive and deterrent law, the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, had been enacted, Modi said.
“We are focused on providing system-based and policy-driven governance. A governance structure that is sensitive, transparent and accountable. We have also introduced a provision under the Prevention of Money Laundering Act for restitution of assets. This will enable millions of poor investors who have lost money in ponzi schemes to recover a part of their hard-earned money," the Prime Minister said.