QUESTION 20
GS3
15 marks
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.
WRITE IN
11 min
250 words
What the examiner wants
Explain how counterfeit currency and laundering move value into terror networks, then connect international counter-financing architecture to FATF standards and national compliance.
Discuss · HighlightAnswer exactly what the question asks.
Demand-wise check
- 1How counterfeit currency can fund/disrupt and how laundering conceals or legitimizes terror finance≈50 words
- 2International cooperation/tools against illicit finance≈50 words
- 3FATF as standard-setter, evaluator and source of peer/listing pressure≈50 words
- 4How member-state compliance translates into prevention, detection, reporting, freezing and prosecution≈50 words
Open in about 30 words and close in about 30.
Answer plan
Two funding mechanismsInternational responseFATF roleMember compliance chain
Where marks usually go
- Calling FATF a law-enforcement body that directly prosecutes offenders
- Listing AML/KYC acronyms without explaining how they interrupt financing
Value addition
- Illicit funds→financial system→detection/reporting/freezing→FATF compliance
→ Draw it in the body, next to the point it supports.
Verified value additions
These are verified official-source additions selected for this exact PYQ. Use only the point that strengthens your argument.
Next: plan for one minute, write it in 11 minutes, then get it checked.