Financial inclusion crucial to counter terrorist financing

Financial inclusion is so important to countering the financing of terrorism and it brings those who normally use cash or the black market into the formal financial system at an affordable cost, said U.S. Treasury Assistant Secretary Daniel L. Glaser, here.

“Safeguards against money laundering (AML) and the financing of terrorism (CFT) are often mistakenly thought to be at odds with financial inclusion. In fact, the opposite is true. AML/CFT safeguards, financial inclusion, and economic growth go hand-in-hand,” said Mr. Glaser while delivering the keynote address at the U.S.-India Private Financial Sector Dialogue: ‘Opportunities and challenges for growth'. The meeting was jointly organised by Confederation of Indian Industry (CII) and U.S.-India Business Council (USIBC).

India plays an increasingly important role in combating terrorism and terrorist financing on the world stage. Notably, in June 2010, India became a full member of the Financial Action Task Force (FATF), the premier international body dedicated to anti-money laundering (AML) and counter terrorist financing (CFT).

New technology is helping, said Mr. Glaser, adding, India provided a prime example with its Unique Identity project (UID), which would seek to allow those without acceptable formal documentation to obtain access to the financial system while cutting down on economic crimes, such as identity theft and social welfare fraud.

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