‘Take RBI help in checking terror funding’

The Govt has asked the J&K Police and ED to seek help from the RBI in monitoring transfer of funds meant for separatist groups.

Updated: Jan 15, 2012, 14:22 PM IST

Srinagar/New Delhi: Intensifying its drive
to curb terror funding, the Government has asked the Jammu and Kashmir Police as well as the Enforcement Directorate to seek
help from the RBI in monitoring transfer of funds meant for
separatist groups for alleged anti-national activities,
including disturbing peace in the state. ".

With Union Home Minister P Chidambaram giving a clear
direction to choke the funding of terror groups, the Union
Home Ministry recently convened a meeting chaired by Home
Secretary R K Singh in the national capital where broad
contours of terror financing were discussed, official sources
said today.

The sources said that during the meeting, Enforcement
Directorate officials indicated that terror groups were
adopting a smart approach of transferring money in small
amounts to avoid suspicious transaction by the security
agencies and bank authorities.

The other modus operandi used by the terror groups and
separatists was that of using credit cards where they had to
withdraw money once they get clearance from terror groups
across the border in Pakistan, the sources said, adding some
funds were even transferred through authorised money transfer
agents in small amounts.

At the meeting, it was decided that the police as well as
the ED would seek help of Reserve Bank of India which monitors
gateways of credit cards and money transfer agents, the
sources said.

While it would be an enormous task of monitoring the
transactions, the officers were asked to detect suspicious
transactions through their intelligence mechanism and later
verify the same with the RBI, the sources said.

The ED has in the meanwhile served summons to several
people who have been booked by the police for terror financing
and the process was underway to attach their properties, if
any, after proving that the same was brought from the proceeds
of terror funding.

The ED has been talking to various security agencies and
the police to gather more details about the cases and would
decide as to in how many cases Prevention of Money Laundering
Act could be invoked, the sources said.

The Centre has been paying special attention to check
illegal funding of separatists and terror groups in Kashmir
and had constituted Combating of Funding of Terrorist (CFT)
cell within the Union Home Ministry to monitor it.

The cell works with organisations like the Department of
Revenue Intelligence, Income Tax, ED, CBI and Directorate
General of Customs and Central Excise Intelligence and later
scrutinise information collected from central police
organisations and the Financial Intelligence Unit.

PTI