India: “Beware the charity label for terror funding”

Charities must be the first focus of any strategy to target the financial systems of terrorist organisations, U.S Acting Secretary of State Daniel Glaser said here.

While most charities were doing remarkable work, they were the “ideal vehicle” to raise and move funds as well as provide material support, Mr. Glaser said at the India Today Conclave.

Nothing should be done to dampen the charitable impulse of genuine organisations. But more charities than any other of organisation had been designated for supporting terrorists.

“This is no surprise, as most terrorist organisations openly advertise themselves as charities.”

Mr. Glaser recommended that the right balance be maintained between shutting down charities with terrorist affiliations and ensuring that humanitarian services continued to be provided. Also, an oversight mechanism should encourage transparency in their operations.
Join FATF

Apart from attending the conclave, Mr. Glaser is here to encourage India’s entry into an intergovernmental organisation on combating money laundering and terrorist financing. Dominated in its initial years by the western world, the Financial Action Task Force’s (FATF) membership now includes Russia, China, South Africa and Brazil.

Previously, the FATF was an “obscure group” but now it was the “international trendsetter for anti-money laundering and countering the financing of terrorism.” India, he said, should get a seat at the table for “some of the most important” international discussions on terrorist financing.

Following the recent Mumbai terror attacks, the United Nations Security Council designated the charity, Jamat-ud-Dawah (JUD), as a front organisation of the Lashkar-e-Taiba. Significantly, one of the four key figures designated by the Security Council was its chief of finance.

India will host a regional conference next month on the abuse of charities. It will be attended by officials from Asian countries.

At the FATF, India is one of the two observers apart from South Korea and both are moving towards full membership. At the regional level, India is a member of Asia Pacific Group on Money Laundering, a FATF-type group.

Source: The Hindu