Counter-Terrorism and Global Security - FATF, UNSC Resolutions, and India's Approach

Counter-Terrorism and Global Security - FATF, UNSC Resolutions, and India's Approach (UPSC)

In today's world, terrorism is not only a "bomb and gun" problem. It is also a "money and network" problem. A terror group needs funding for recruitment, travel, propaganda, training, weapons, safe houses, and even cyber tools. That is why modern counter-terrorism has two parallel tracks:

• Security track: stop attacks, dismantle networks, prevent radicalisation, strengthen borders and intelligence.
• Financial track: stop the money — freeze assets, track suspicious transactions, control hawala/crypto misuse, and punish terror financiers.

For UPSC, this topic is important because it connects Internal Security (GS3) with International Relations & global governance (GS2). It also links with economy topics like money laundering, financial regulation, and international cooperation.

Why this topic matters for UPSC

Big picture: How terrorism affects global security

1) Terrorism is a transnational threat

• Recruitment and propaganda can happen online across borders.
• Funding can move through banks, hawala networks, crypto wallets, trade-based routes, and shell entities.
• Groups often link with organised crime (drug trafficking, arms smuggling, human trafficking) to earn money.

2) Terror financing is the "lifeline"

Terrorist funds can come from:

• Illegal sources: drugs, extortion, kidnapping for ransom, smuggling, cybercrime, illegal mining/logging.
• Legal-looking sources: donations, charities, crowdfunding, front businesses, salary income of lone actors.

3) New technology is changing the threat

• Encrypted messaging + social media fundraising + online payment methods can hide networks.
• Virtual assets can be misused for cross-border value transfer and "layering".
• Drones and low-cost tech can increase "asymmetric" attacks.

UN Counter-Terrorism system: Who does what?

The UN framework works through:

• Binding obligations (UNSC resolutions): common minimum rules for all states.
• Sanctions regimes: targeted sanctions like asset freeze, travel ban, arms embargo.
• Monitoring and assistance: committees and expert bodies track implementation and help build capacity.

UNSC Resolutions for Counter-Terrorism: The backbone (UPSC must-know)

Below are the most exam-relevant UNSC resolutions. Remember the logic: stop support, stop money, stop movement, stop weapons, and strengthen cooperation.

Prelims Angle: How to remember the flow

• 1267: "List and sanction" (named individuals/entities).
• 1373: "Rules for everyone" (all states must act, even without a list).
• 1540: "WMD must not reach terrorists".
• 2178 + 2396: "Stop foreign fighters + track travellers".
• 2462: "Stop terror finance end-to-end".
• 2482: "Crime and terror feed each other".

Mains Angle: What UPSC likes in answers

• Explain how UNSC created a global legal "minimum standard".
• Show why implementation differs across countries (capacity, politics, conflict zones).
• Balance security with civil liberties and humanitarian concerns.

FATF (Financial Action Task Force): Global standards + pressure mechanism

1) What is FATF and why it matters in counter-terrorism?

FATF is the key global body that sets standards to fight:

• Money laundering (ML)
• Terrorist financing (TF)
• Financing of proliferation of WMD (PF)

In simple terms, FATF improves global security by making it harder for criminals and terrorists to use the financial system.

2) FATF Standards: 40 Recommendations + risk-based approach

The FATF Recommendations are international standards that countries implement through laws, regulators, and enforcement agencies. A core idea is the risk-based approach:

• Identify the biggest ML/TF risks.
• Focus resources on higher-risk areas.
• Prevent "tick-box compliance" and aim for real effectiveness.

3) How FATF checks countries (Mutual evaluation)

FATF conducts peer review reports called mutual evaluations. These assess:

• Technical compliance: Are laws and rules in place?
• Effectiveness: Are criminals/terror financiers actually being detected, prosecuted, and stopped?

4) FATF "grey list" vs "black list" (very common Prelims topic)

Latest FATF public lists (for exam awareness)

Note: FATF updates these lists multiple times a year. Always check the latest list close to your exam.

How UNSC and FATF connect (very important for Mains)

Many students treat UNSC resolutions and FATF as separate topics. In real policy, they work like a "two-layer system":

• UNSC layer: Creates binding obligations and sanctions frameworks for global security.
• FATF layer: Gives detailed financial standards and checks whether countries are actually implementing them.

Example of linkage: UNSC sanctions regimes require asset freezes and targeted financial sanctions. FATF standards explain the practical "how" — customer due diligence, beneficial ownership transparency, suspicious transaction reporting, and effective freezing without delay.

India's approach to counter-terrorism and global security

1) India's core principles

• Zero tolerance to terrorism: India consistently argues that terrorism cannot be justified for political purposes.
• No double standards: Terrorists should not be differentiated as "good" vs "bad".
• Focus on terror financing: India stresses that stopping finance is as important as stopping weapons.
• Accountability for safe havens: India pushes global action against networks that operate across borders.

2) India's domestic toolkit (overview)

India's counter-terrorism response is built on:

• Laws: UAPA (core anti-terror law), PMLA (money laundering), NIA Act (investigation agency), plus sectoral laws on arms, narcotics, cybercrime, etc.
• Agencies: NIA, intelligence setup, specialised forces, and financial intelligence/enforcement mechanisms like FIU and ED (for financial crime).
• Systems: stronger coordination, data-driven risk monitoring, border management, and cyber capabilities.

3) India and FATF: Why it matters

• India participates in global standard-setting on AML/CFT/CPF.
• India benefits from shared typologies, best practices, and peer pressure mechanisms.
• India uses FATF norms to strengthen domestic systems: customer due diligence, suspicious transaction reporting, targeted financial sanctions, and risk-based supervision.

4) India and the UN system (UNSC + conventions)

• Comprehensive Convention on International Terrorism (CCIT): India proposed it in 1996 to create a universal legal definition of terrorism and strengthen global cooperation.
• Support for UNSC sanctions: India pushes for listing of terrorists and implementation of targeted sanctions.
• Leadership and convening: India has hosted and supported high-level discussions on emerging terrorist threats, including misuse of technology.

5) India's counter-terror financing focus (what to write in Mains)

Write India's approach as a "4-part model":

• Track & detect: financial intelligence (STRs, FIU inputs), data analytics, risk scoring.
• Disrupt: freeze assets, block channels, shut down front entities, stop hawala/illegal MVTS.
• Deter & punish: strong investigation, prosecution, and confiscation of proceeds of crime.
• Cooperate globally: FATF standards, UNSC sanctions compliance, mutual legal assistance, extradition, information sharing.

Challenges (for balanced Mains answers)

• Fast-changing finance: crypto tools, mixing services, cross-border platforms, and privacy tech make tracing harder.
• Organised crime nexus: narco-terror routes, arms trafficking, and smuggling can create steady revenue streams.
• Jurisdictional limits: terrorists can exploit weak states/conflict zones and safe havens.
• Balancing security and rights: CT measures must respect due process, avoid misuse, and protect legitimate civil society activity.
• Implementation gaps: delays in prosecution and low conviction/asset recovery rates reduce deterrence.

Way forward (UPSC-ready points)

• Strengthen "follow the money" capability: faster tracing, freezing, and confiscation of terror-linked funds.
• Update regulation for new risks: virtual assets, online crowdfunding, and high-risk digital intermediaries.
• Improve coordination: stronger real-time sharing among intelligence, police, regulators, and financial agencies.
• Global cooperation: push for CCIT, stronger UNSC action against listed entities, and wider information-sharing networks.
• Protect legitimate activity: risk-based oversight of NPOs while ensuring humanitarian and genuine charity flows are not harmed.

Prelims Quick Revision (1-page value)

• FATF sets international standards on AML/CFT/CPF.
• FATF issues public documents for grey list (increased monitoring) and black list (call for action).
• UNSC 1373 (2001): creates CTC; mandates criminalising TF, asset freezes, cooperation.
• UNSC 1267 regime: targeted sanctions list (asset freeze + travel ban + arms embargo).
• UNSC 1540 (2004): WMD must not reach non-state actors; 1540 Committee.
• UNSC 2178 (2014) & 2396 (2017): foreign terrorist fighters + border data tools.
• UNSC 2462 (2019): comprehensive focus on terror financing.
• UNSC 2482 (2019): terrorism–organised crime nexus.
• India proposed CCIT in 1996.

Mains Answer Framework (ready-to-use)

Question type: "Discuss the role of FATF and UNSC in counter-terrorism and evaluate India's approach."

• Intro (2–3 lines): Terrorism is sustained by financing and cross-border networks; hence global legal + financial frameworks matter.
• Body Part 1: UNSC resolutions (1373 obligations + 1267 sanctions + 2462 financing focus).
• Body Part 2: FATF standards (40 Recommendations, mutual evaluations, grey/black lists).
• Body Part 3: India's approach (zero tolerance + domestic law/agencies + CCIT + global cooperation).
• Challenges: tech, safe havens, organised crime, balance with rights, prosecution delays.
• Way forward: strengthen follow-the-money, regulate emerging risks, improve cooperation, push CCIT.
• Conclusion: global security needs both "hard" security and "financial integrity"; India's role is crucial due to its scale and threat environment.

SEO-friendly FAQs (high utility for web search)

What is the FATF grey list?

It is the list of "Jurisdictions under Increased Monitoring" — countries with strategic AML/CFT deficiencies that have committed to an action plan and are being monitored.

What is the FATF black list?

It is the list of "High-Risk Jurisdictions subject to a Call for Action" — countries with serious AML/CFT deficiencies for which FATF urges enhanced due diligence and, in serious cases, countermeasures.

Why is UNSC Resolution 1373 important for UPSC?

It is the core resolution that created the global counter-terrorism compliance framework through the Counter-Terrorism Committee and mandatory actions like criminalising terror financing and freezing assets.

How does India contribute to global counter-terrorism?

India promotes zero tolerance, supports UNSC sanctions and implementation, participates in FATF standards, and has pushed for a universal convention (CCIT) to strengthen global legal cooperation.

Suggested internal links for clarityupsc.com: Money Laundering (PMLA), Internal Security (Terrorism), UN Security Council, India and UN, Cyber Security, Organised Crime & Narco-terrorism, India's Neighbourhood and cross-border security.