Thursday, February 15, 2007

Terrorist groups manipulate Stock Market to raise funds: M K Narayanan

A new revelation came from the National Security Advisor MK Narayanan that the Terrorist organizations are manipulating Indian stock exchanges through fake companies. They are raising millions of dollars for planning and carrying out strikes against India with the support of Pakistan.

The jehadi outfits such as Lashkar-e-Taiba, Hizbul Mujahideen and Al-Badr are raising funds through a presumably legal route. The companies, which often exist only on paper with addresses in the Middle East, are fronts for Pakistani agencies.

This is nothing but a surprising disclosure that has showed the evolution of new kind of anti-India terrorism. The NSA MK Narayanana has spoken about it at the 43rd Conference on Security Policy in Munich last week.

He said;

Isolated instances of terrorist outfits manipulating the stock exchanges have been reported... stock exchanges in Mumbai and Chennai have, on occasion, reported that fictitious or notional companies were engaging in stock market operations.

Narayanan further given hints of a conspiracy by some official agencies in Pakistan and their agenda to destabilize the Indian Economy. He presented a detailed view of the unconventional threat posed by terrorists raising funds within India to strike against the country.

He outlined the complex mix of funding routes - through stock exchanges, banking channels, ordinary ATM withdrawals and hawala trails as well as operation of legitimate businesses like hotels and transport - used by modern terrorists to sustain and launch their operations. The challenge, he said, lay in forging cooperation between governments to choke terror funding.

The shocking disclosure has sent shockwaves through the entire economic setup.

The IBNlive has reproduced some part of his speech where he listed the more common methods employed by terrorist outfits to generate funds, as experienced in the context of South Asia.

# Voluntary contributions- receiving money from individuals, members of emigrant communities and groups that backed the terrorist organization.

The LTTE in Sri Lanka and the al-Qaeda regularly receive much contribution through such kinds of means.

# Forced donations- used by the Ethnic, ideological and religious terror groups on special occasions such as religious festivals. Compulsory subscriptions to pro-terrorists paper works have become an important way to generate funds.

The Pakistan-based Lashkar-e-Toiba’s monthly, Majalah-al-Dawana, and its weekly magazine, Al Ghazwa, are two prime examples.

# State sponsorship- The terrorists groups operating in India such as Lashkar-e-Toiba, the Hizbul Mujahideen and Al Badr are well patronized through the provision of funds across the border.

# Extortion and use of coercive methods- Terrorists groups today working like criminal enterprises and getting money by threatening small businesses, individuals and even some state enterprises.

# Association with Criminal Syndicates- There are some signs coming about the the growing partnership among Jehadi and non-jehadi terrorist outfits with Organised Criminal Syndicates. It takes many forms, but mainly bank robberies and kidnapping for ransom.

# Using legal business enterprises- some terrorist outfits has set up legal business enterprises such as restaurants, real estate, shipping to utilise part of the proceeds to siphon off funds for terrorist activities. LTTE is the best example of this network of legitimate businesses.

# Stock market operations- Inaccessible 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.

# Misusing banking channels- The banking channels are regularly being used to raise funds for terrorist operations. On many occasion, it has been proved about funds received via banking channels from Dubai and UAE projected for terrorist organizations.

# Counterfeit currency- Fake of currency is currently a favorite method being adopted to fund terrorist activities directed at India. Large amounts of high-quality counterfeit Indian currency are detected each year, the normal route being via Nepal and Bangladesh.


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