Chapter IV continues...

(iv) Extortion and use of coercive methods: Many terrorist outfits today imitate criminal enterprises. Intimidation of small businesses, individuals and even some State enterprises to extort funds has become common. Association with Criminal Syndicates—Jehadi and non-jehadi terrorist outfits seek, and enter into, partnerships with Organized Criminal Syndicates, and outsource fund-raising to the latter. This is largely true of metropolitan cities. It takes many forms, but mainly bank robberies and kidnapping for ransom.

(v) Utilisation of legitimate business enterprises:Terrorist outfits set up legitimate business enterprises, viz. restaurants, real estate, shipping, etc. and utilize part of the proceeds to siphon off funds for terrorist activities. Among terrorist outfits, the LTTE had a very well-established network of legitimate businesses, worth about $2 billion, which provide both funds as well as logistics for their activities. Jehadi terrorist organizations have begun to follow the example of the LTTE.

(vi) Stock market operations: Isolated instances of terrorist outfits manipulating the stock markets to raise funds for their operations have been reported. Stock Exchanges in Mumbai and Chennai (India) have, on occasions, reported that fictitious or notional companies were engaging in stock-market operations. Some of these companies were later traced to terrorist outfits. Misuse of banking channels-legitimate banking channels are regularly being used to fund terrorist operations. Many instances of funds received via banking channels from so-called safe locations such as Dubai and UAE intended for terrorist organizations have been detected by Indian Counter-Terrorist Agencies. Each individual transaction tends to be small so as not to attract attention and to avoid detection. Use of both real, and fraudulent, ATM cards has also been resorted to at times. The UPA government’s introduction of Participatory Notes (PN) instrument which has been exempted for some mysterious reason from disclosing the owners and sources of funds in the purchase and sales of the PNs., has been continued for some inexplicable reason during the last seven years by the Modi Government.

to be continued....