So, it is imperative that we treat terrorists, their allies, sympathizers, and associates, with the same yard stick, and not get fooled by some of the sugar coated pills in which blatant and horrendous acts of terrorism are sometimes cleverly packaged and presented. What are the other manifestation of these organized funding schemes? We, in the South Asian Region, are conscious of the unofficial banking systems that operate, like the Hawala and Hundi, which pose a serious threat to our efforts to close the avenues available to money launderers and terrorists. These underground banking services provide the ideal framework and the means for laundering of money and financing terrorism. It has just been reported that the Indian Income Tax Department early this year, busted a money-laundering racket during a routine investigation into Hawala transactions. From the information unearthed so far, they have discovered that Transworld ICT was only a front for a huge money laundering scam. In this scam, a certain Delhibased businessman, is said to have, by himself, remitted US $ 1.4 billion between January and July 2006 "as proceeds of software business" through Transworld ICT Solutions, which essentially worked as an illegal clearing house. BIS Review 48/2007  1  We are of course, mindful of the efforts of the international standardsetters and watchdogs, to deal with these situations. They work tirelessly to review and recommend the preventive measures needed to be taken in this regard.
If unchecked, it may only be a matter of time, before terror groups in other parts of the world also emulate these dastardly attacks. It is therefore, vital that all countries quickly assist Sri Lanka to eradicate this threat, as otherwise, it may only be a matter of time, before this too becomes a new tool in the armoury of terrorists. Today, combating terrorism cannot be considered the sole responsibility of single governments or of single sets of soldiers who fight at the front at the risk of their lives. We must all get involved in an international effort if we are to defeat this menace. In these efforts, financial institutions and all other corporate entities, especially, NGO’s must also actively help prevent the funding and the flow of goods and services to terrorist organizations. We must all be wise to the type of trade we are engaged in, and be mindful of the impact it can have in facilitating terrorist activity. It therefore becomes imperative that any loopholes in banking which can be identified as facilitating the financing of terrorism and strict adherence to regulations to prevent such financing, receive the immediate attention of the regulatory institutions. The aftermath of natural disasters also often provide happy hunting grounds for money launderers and terrorists. Sri Lanka’s experience post-tsunami is ample testimony to this reality. Organisations and individuals emerged from nowhere after the Tsunami, with absolutely no track record of humanitarian work, to descend on us in the guise of humanitarian relief.