Sunday, June 15, 2014

International Movement of funds and terrorsim


The need to kill terrorism throughout the world is essential but to kill trade and commerce and the growing international financial system in the garb of preventing money laundering and combating financing of terrorism is neither desirable nor advisable. Many countries including the poor have become members of Financial Action Task Force and have been putting the best of efforts to comply with its guidelines to contain source of finance to terrorism and improve their economic relations internationally is a fact. The concept of know your Customers adopted by banks has been affecting their business prospects and making financial inclusion particularly banking inclusion is becoming a distant dream in India at least. The globalisation of economies has been a reality for the past few years and this cannot be and should not be shot down by too much of regulation in international movement of funds. The approach to contain financing terrorism presently in vogue needs a review and there should be alternatives to prevent terrorism perhaps with more of administrative mechanism, political weapons, improved statesmanship and diplomacy. Terrorism should vanish and international trade and Commerce should grow under a very sound financial system for a better living.  

Dr.T.V.Gopalakrishnan   

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