Explanation:

.Steps taken by India to combat terror financing and money laundering
• In line with the FATF standards, RBI has introduced strict KYC norms for banking related activities. On its part SEBI has also tweaked its KYC norms for market related transactions.
• The Unlawful Activities (Prevention) Act, 1967(UAPA) and the Prevention of Money laundering Act, 2002 (PMLA) are effective instrumentalities to combat offences relating to Terrorist Financing and Money laundering. The Unlawful Activities (Prevention) Act, 1967 has been strengthened by amendments in 2013 which inter-alia includes enlarging the scope of proceeds of terrorism to include any property intended to be used for terrorism
• A special Combating Financing of Terrorism (CFT) Cell has been created in the Ministry of Home Affairs in 2011, to coordinate with the Central Intelligence/Enforcement Agencies and the State Law Enforcement Agencies for an integrated approach to tackle the problem of terror funding.
• Also, a Terror Funding and Fake Currency Cell have been set up in the National Investigation Agency to investigate Terror Funding cases.
• Moving with FATF standards, FIU (Financial Intelligence Unit) India has been established to monitor suspicious financial transactions that could be related to terror finacing.
• SEBI is intensively cracking down on Shell Companies that could be involved in money laundering or generating resources for terror financing.
• For past several years, the government is cancelling the registration of NGOs which are not filing timely returns/reports under FCRA or Foreign Currency Regulation Act.
• Finally, the Narcotics Act of India is being implemented to curb the menace of drug trafficking. Also, the BSF and other border security agencies are keeping a special check on cash couriers and drug mules as often these are related to terror financing.