Terrorism Financing in South Asia

A major part of funding for terrorism from external sources comes through counterfeit currency, drug trafficking, charities, Non-governmental organizations (NGOs) and finally as a result of state sponsorship by Pakistan. In the case of counterfeit currency and drugs, the funding process starts with production. The initialisation is different for NGOs and charities, where it begins with the collection of funds. This can be open and legal as done through zakat, or clandestine and illegal. The next stage sees the transferring of funds into India. Finally, once the transfer has been completed, money is received by terrorist groups and their front organisations. These stages have been discussed individually for each source, to illustrate the nature and cycle of funding.

Keywords:
Terrorism, Funding, Zakat, NGO,