By Arun Kumar
Washington, March 4 (IANS) India's economic and demographic expansion makes it both a regional financial centre and an increasingly significant target for money launderers and terrorist groups, according to a new US report.
"India also faces an increasing inflow of high-quality counterfeit currency, which is produced primarily in Pakistan but smuggled to India through multiple international routes," said the State Department's International Narcotics Control Strategy Report (INCSR) to US Congress.
"Criminal networks exchange counterfeit currency for genuine notes, which not only facilitates money laundering, but also represents a threat to the Indian economy," the report added.
India's extensive informal economy and remittance systems, porous borders, strategic location, persistent corruption, and historically onerous tax administration contribute to its vulnerability to financial and terrorist-related crimes, it said
India's location between heroin producing countries in the Golden Triangle and Golden Crescent, along with its porous borders, also makes it a frequent transit point for drug trafficking, said the report reviewing conditions in the major illicit drug-producing countries and major drug-transit countries.
India is also a significant target for terrorist groups, both external and domestic, the report said noting most terrorist activities are conducted by international terrorist groups and entities linked to the global jihad, with the support of both state and non-state external actors.
In addition, several domestic separatist and insurgent groups are active, it said. "Terrorist groups often use counterfeit currency and hawaladars, as well as physical cross-border currency smuggling, to move funds from external sources to finance their activities in India."
Taking note of India's low number of money laundering convictions and the financial sector's low number of terrorism-related suspicious transaction reports, the report said suggested tighter controls.
The INCSR also suggested that India has become a hub of drugs sold through illegal Internet pharmacies and the misuse of courier services, despite constant efforts by governments at all levels to combat this sort of crime.
However, it noted that India is increasing its efforts at training of its national enforcement officers, and is vigorously exploiting opportunities for international cooperation in an effort to improve the effectiveness of both its demand and supply control efforts.
The Karmapa's website has been requesting his followers to follow certain prayers.
"With the tremendous outpouring of messages of support from people around the world wishing to contribute positively to the current situation, His Holiness the Karmapa has advised the international Dharma centres, students and supporters around the world that the prayers would be good," said a post on the site.
Police recovered currency of 26 countries, including 120,197 Chinese yuan and around Rs.5.3 million Indian currency, from the monastery Jan 28.
Seven people, including the Karmapa's aide Rubgi Chosang, also known as Shakti Lama, are still in police custody.
Top officials of the Karmapa had said Feb 17 that the central government, while signalling a clean chit to the Tibetan leader in the controversy over unaccounted foreign currency, wanted him to register his trust and also apprise monastery functionaries on Indian laws.
According to a senior monastery functionary, a delegation from the Karmapa establishment had met senior home ministry officials in Delhi, including Home Secretary G.K. Pillai, and they seemed quite convinced that the Karmapa had no role in dealing with financial affairs.
The Karmapa had fled Tibet and sought refuge in India in January 2000. Ever since, he has mostly lived at the monastery in Sidhbari near Dharamsala. In the Tibetan religious hierarchy, he is considered the third most important Tibetan religious head after the Dalai Lama and the Panchen Lama.