Against the backdrop of the Paris attacks, Prime Minister Narendra Modi on Wednesday pitched for a concerted global response to “choke terror funding” by putting in place both “systemic safeguards and targeted economic sanctions based on credible counter-terrorism Intelligence”.
Modi also sought disruption of fund flows from “state sponsors” and from “activities in failed states” to terrorists across the globe. Modi asserted disrupting fund flows “constrains the capabilities of terrorists and reduces their ability to execute attacks.”
While the apparent reference to “state sponsors” was Pakistan that patronises terror outfits like the leT and Taliban, Modi did not specifically name the neighbouring country.
“The dastardly acts committed in Paris a few days ago are a grim reminder that terrorists have shown remarkable flexibility and adaptability in meeting their funding requirements,”Modi said.
“They derive funding from a variety of criminal activities which include smuggling of narcotics, bank robbery, vehicle theft, fake currency, or from state sponsors and activities in failed states,” Modi said.
Stressing that targeting proceeds of crime is an important element in this fight against crime, the Prime Minister (PM) said there was an imperative need to enhance international co-operation in the field of asset recovery for fighting crime, corruption and terrorism.
Inaugurating the sixth Global Focal Point Conference on Asset Recovery and 21st conference of CBI and State Anti-Corruption and Vigilance Bureaus, attended by 50 countries, the PM listed out his Government's crusade against corruption within India and pointed out “globalisation of organized crime” poses a major threat to economies throughout the world. “It is a well-known fact that dirty money drives out good money,” he said.
“Economic liberalism and globalization have drastically increased the ability to park profits of crime anywhere in the world. Today proceeds of crime can be routed through dozens of countries within seconds. By a process of layering the money-trail can be concealed. Investigation agencies are limited by national boundaries,” Modi said, adding his Government is committed to the implementation of a uniform global standard on Automatic Exchange of Information, on a fully reciprocal basis.
This, he said, will facilitate exchange of information regarding people who have concealed their money in offshore financial centres and tax havens. Modi lauded the efforts of Interpol and its partners, World Bank and UNODC, in conceiving the idea and giving leadership to this forum that has the potential to put an end to safe havens for the corrupt.
Confiscation of property of offenders not only serves as punishment but also discourages commission of crime. In fact, Kautilya in his 'Artha Shastra,' had suggested confiscation of illegitimate income as one of the punishments for corrupt public servants, he said.
Highlighting the achievements of his Government in tackling the menace of corruption including setting up of SIT to check black money, the PM said corruption was one of the “principal challenges” for government's across the world in transforming the lives of poor and marginalized.
“We in India are currently in a crucial phase of nation building,” he said adding the government, was committed to ensuring probity among public servants and to protect them from frivolous allegations. “Equally, the government is unsparing when it comes to punishing the corrupt. We have so far removed and ensured pension cuts of 45 senior officers for unsatisfactory performance and delivery in public service,” he said.
The Prime Minister said India has entered into agreements with many countries for exchanging real time information on black money besides signing an inter government agreement with the US to implement the Foreign Account Tax Compliance Act (FATCA).
Modi said a comprehensive and deterrent law, the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act was enacted and also introduced a provision under the Prevention of Money laundering Act for restitution of assets.
“This will enable millions of poor investors who have lost money in ponzi schemes to recover a part of their hard earned money,” he said.
The Prime Minister said the partnership between Stolen Asset Recovery Initiative (StAR) and Interpol will help in confiscation and recovery of stolen assets.
launched in January 2009, the Global Focal Point was created in partnership between Interpol and StAR to promote and increase the exchange of corruption data among law enforcement agencies and anti-corruption entities worldwide. The objective of this initiative is to respond to concerns of asset freezing, seizing, confiscating and recovering stolen assets.
The two-day conference is attended by over 100 delegates from 50 countries including Federal Bureau of Investigation.
Interpol Secretary General Jurgen Stock also addressed the conference and charmed the audience by using phrases in Hindi and underscored the underlying philosophy of Indian concept of “vasudhaiv kutumbkam' for countering terror. He stressed that response to terror should be from a united one world.
“Now more than ever this family must stand united in its effort to prevent the repetition of what has happened against humanity in Paris last Friday, in Beirut and Ankara recently or in Mumbai in 2008.”