An official US report has said that India faces increasing inflow of counterfeit money, produced primarily in Pakistan. The 2011 International Narcotics Control Strategy Report of the State Department said terrorist and criminal networks use this money to finance their activities in the country. The report further said the Criminal networks exchange counterfeit currency for genuine notes, which not only facilitates money laundering, but also represents a threat to the Indian economy. The State Department report recommends that the Indian Government should press for presidential approval to implement the Foreign Contribution (Regulation) Act 1976. Under the act, it would extend foreign contribution reporting requirements to any non-profit organisation that has a political, cultural, economic, educational or social focus. It also recommended to automate notification of suspicious transactions to the Financial Intelligence Unit. It also recommended the Indian Government to facilitate development of alternative money transfer services, including mobile banking.
News On AIR | March 4, 2011 11:49 AM
India faces increasing inflow of counterfeit money: US report