Money Laundering Current Affairs - 2020

National Coordination Center – A database of Maoists

The Government of India is planning to set up a National Coordination Center (NCC) that will function as a data bank of Maoists. It will act as a synergy point for anti – Maoist operations and intelligence gathering.

Key features of the NCC

  • It will create a strategy for security agencies to counter support received by the Maoist leaders. It will also control the sympathy gained or created by the Maoists in the social media
  • It will utilize knowledge of retired police officers who served in anti – Maoist operations in Odisha, Andhra Pradesh and Chattisgarh.
  • NCC will identify the sources of finance to the Maoists and work to neutralize the network

Maoism in India

  • The number of Maoist incidents was 500 in 1989. It has come down to 354 in 2018
  • The Geographical spread of Maoism has reduced in the last five years
  • In the last 10 years before 2018, the number of police stations affected with violence has come down to 250 from 465.

Main regions of Maoism

The most formidable strong hold of Maoism is southern areas of Chattisgarh, Andhra – Odisha border, parts of Jharkhand. In particular the three districts Bijapur, Sukma and Dantewada have strong hold of Maoists. South Sukma has encountered around 150 Maoist attacks.

The prospective base areas of Maoist leaders include Saranda forest, Parasnath hills, areas adjoining districts of Bihar.

Concerns of Maoism

  • Gaining the trust of the locals is the major challenge. The locals were killed mercilessly in public on mere suspicion of being alleged police informers.
  • The mobile towers in and around these areas are very less. This affects the flow of intelligence from the core areas to execute operations against the Maoists. In Bijapur district, there were only 50 towers for a combined area of 6,000 square kilometers.

Significance of NCC

  • Government takes measures to address the administrative vacuum which is the major challenge in addressing Maoism. Around 20 camps were established in South Bastar last year
  • The Andhra – Odisha border and some districts of Odisha are inaccessible. The continuous exploitation of inter – state boundaries by the Maoists is the major concern. The NCC will help to combat this exploitation.
  • The Center will work with the Indian Institute of IED Management to analyze various types of IEDs used by the Maoists.
  • Joint operations between the state police is also being suggested. This will help to concentrate on tri – junctions of the LWE affected states, especially in the borders. NCC will work towards achieving this goal
  • NCC will also help in real time information sharing, joint action and coordination among different states, etc.

FATF report on money laundering: slams Pakistan for terror funding

The Asia – Pacific Group of FATF (Financial Action Task Force) slammed Pakistan as the later failed to take actions against terror groups. On 5th October, 2019, the group published report on Money Laundering and terror financing in Pakistan.

Key statements of the report

  • The watchdog reported that Pakistan failed to implement the UNSC (United Nations Security Council) resolution against Hafiz Saeed, JeM – Jaish – e – Mohammed, LeT – Lashkar – e – Taiba.
  • The report disagreed Pakistan’s self – assessment that it only faces ‘medium’ category risks.
  • It also said that the key banking institutions in the country like the Securities and Exchange Commission of Pakistan and State Bank of Pakistan had very limited or no understanding of the terror financing regimes of the country.
  • The report alerted Pakistan that it could be black listed alongside North Korea and Iran unless it takes actions against the UN – designated terrorists in its soil

FATF

FATF is the Finacial Action Task Force. It is an inter – governmental body that was established in 1989. The main objective of the organization is to set standard and promote implementation of legal regulatory measures for money laundering and terror financing. It issued a series of recommendations as international standard to combat money laundering. It now forms the base for coordinated response to threats faced by financial systems