In an urgent move to counter terrorism and its funding, the government has initiated decisive actions, directing regulatory and investigative agencies to impose financial sanctions against individuals and entities associated with terrorism. These entities have notably been blacklisted by the United Nations Security Council (UNSC) for their involvement in terror financing, and the government is pushing for swift enforcement, ideally within 24 hours.

Financial Intelligence Unit (FIU) at the Helm

The Financial Intelligence Unit , responsible for detecting money laundering and black money, is leading this critical operation. The FIU's role is expanded by implementing section 12A of The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act (WMD Act) of 2005. The FIU is tasked with identifying, notifying, and initiating legal action against the perpetrators.

Urgency Explained

The urgency behind the 24-hour timeframe is highlighted in a communication from the Department of Revenue (DoR). "Without delay" in the context of terrorism and terror financing, sanctions means preferably on the same business day but not later than 24 hours.

Legal Framework and Regulatory Involvement

The Weapons of Mass Destruction (WMD) Act is a crucial tool to prevent the misuse of such weapons by non-state actors and terrorists. Financial sanctions are imposed through section 51A of the Unlawful Activities (Prevention) Act (UAPA) and Section 12A of the WMD Act. The Ministry of External Affairs (MEA) enlists and updates the concerned entities. Regulatory bodies like the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Intelligence Bureau (IB), National Investigation Agency, and state police are involved.

FIU's Authority and Actions

The Director, appointed as the central nodal officer (CNO) under section 12A of the WMD Act, holds the authority to freeze, seize, or attach financial assets linked to entities named under the 2005 law. Reporting entities must promptly inform the CNO of any match in transaction details. If evidence suggests assets are linked to blacklisted entities, a freeze order is issued without delay.

The FIU is not required to provide prior notice before issuing a freeze order, and it will also identify and recommend entities for reference to the UNSC, managing potential de-listing efforts.

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