“Crowdfunding for Terrorism Financing” is a recent report put forward by the Financial Action Task Force (FATF), spotlighting how violent extremist organizations have adopted well-organized networks for fundraising. The report includes references to groups like the Popular Front of India (PFI), who have allegedly used funds solicited at mosques and public spaces to acquire arms, ammunition, and training for their cadres.
Crowdfunding typically acts as an innovative way to raise funds through online platforms from a large number of individuals for various causes, including charitable initiatives, supporting startup ventures, or funding creative projects. However, it has also been exploited for illegal activities, particularly by terrorists and terrorist groups who use these platforms to solicit financial support for their extremist causes.
Methods of Misuse for Terror Financing
Terrorists exploit crowdfunding in a number of ways, such as abuse of humanitarian, charitable and non-profit causes, dedicated crowdfunding platforms which can be hard to monitor due to high volume and variety of activity, via social media platforms and messaging apps, or by interacting with virtual assets like privacy coins and anonymity enhancing services.
Key Insights from the FATF Report
The FATF report provides significant insights into terrorism financing. It highlights the PFI’s mixed fundraising strategies, involving both traditional means (like solicitation at religious places) and modern digital methods, such as QR codes and bank account details. It also gives insight into how the funds raised through crowdfunding are invested, not just in terror activities, but also in businesses and real estate projects to generate regular income for the organization’s operations.
The report also underscores the global nature of the issue, providing examples of international organizations like ISIL and Al-Qaeda that have exploited these platforms. It emphasizes the need for consistent Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulations.
About Popular Front of India (PFI)
The PFI is an organisation that was formed in 2007 through the merger of three Muslim organizations in southern India. Presenting itself as an advocate for the rights of minorities, Dalits, and marginalized communities, it has faced allegations of involvement in extremist activities. In 2022, it was declared an “unlawful association” by the Ministry of Home Affairs.
Managing Organisations whilst Preserving Civil Liberties and National Security?
There are numerous strategies that can be employed to deal with such organisations while preserving civil liberties and ensuring national security. These include establishing a clear legal framework defining the conditions under which an organization can be designated as a threat, judicial oversight to gauge legality of government actions, transparency and accountability in designating organizations as unlawful, focusing on targeting individuals or entities directly involved in illicit activities, enhancing intelligence gathering and surveillance capabilities, and increasing public awareness about extremist ideologies.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
Previous year questions in the UPSC Civil Services Examination have touched upon topics related to emerging technologies, globalisation, money laundering, terrorism, and measures required to tackle these problems. Examining these questions can provide insights into the complexity and intensity of these issues and help candidates prepare effectively.