How hawala money is used to fund terror Vicky Nanjappa in Bengaluru
March 06, 2009 15:41 IST The Financial Intelligence Unit last month marked 200 transactions in India -- running into Rs 2,000 crore -- as terror-financed. Now, it has commenced its probe to trace the origin of the funds. It is a known fact that terrorist outfits use counterfeit notes to finance terror operations. This is just one of the means adopted by terror outfits and Pakistan's Inter Services Intelligence to raise Rs 1,800 crore a year to finance terror. However, in the case being probed by the FIU, there is a considerable amount of money deposited in the banks, meaning they are not counterfeit. The money which is pumped into terror operations is generated through various sources: smuggling of opium, real estate, fake notes and extortion bids. Interestingly, the main source of revenue remains the ISI. A study conducted on terror financing indicates that the Pakistan government allocates money officially to the Secret Service Funds. This amount is given for collection o