Theme T164 · Internal Security

Terror financing & money laundering: FATF, NMFT, PMLA

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What UPSC asks

UPSC asks terror funding sources (counterfeit currency, laundering), FATF compliance, the NMFT conference, emerging tech and money laundering, and the threat to economic sovereignty.

Prepare these

• FATF recommendations and grey list
• PMLA and ED
• NMFT conference
• Crypto and hawala

Answer writing

• National and international measures

Directive words in these PYQs: Discuss (3), Highlight (1), Elaborate (1).

Linked themes

Builds on: study these first

These come earlier in the roadmap. Questions in this theme use them.

Comes back later in

Later themes that take this one further.

Syllabus lines covered

• GS3-L17 — Role of external state and non-state actors in creating challenges to internal security.
• GS3-L18 — Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention

All 4 PYQs, newest first

1. GS3202615 marks · 250 wordsGS3-SEC-02-M2026-S02

   Discuss counterfeit currency and money laundering as major sources of terror funding in India. State the actions being taken at International level to check these menaces. Highlight the role of Financial Action Task Force (FATF) and methods of compliance by its member states in preventing terror funding.

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2. GS3202315 marks · 250 wordsGS3-SEC-02-M2023-Q20

   Give out the major sources of terror funding in India and the efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the No Money for Terror (NMFT) Conference recently held at New Delhi in November 2022.

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3. GS32021GS3-SEC-03-M2021-S01

   Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.

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4. GS32013GS3-SEC-03-M2013-S01

   Money laundering poses a serious security threat to a country’s economic sovereignty. What is its significance for India and what steps are required to be taken to control this menace?

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