CFT Training for Central Asia: India Focuses on Crypto, NPO Risks

The programme brought together high-ranking officials and counterterrorism experts from Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan, and Kyrgyzstan.

In a landmark initiative underscoring India’s commitment to international security cooperation, the Department of Revenue (DoR), in partnership with the Ministry of External Affairs (MEA) and the National Security Council Secretariat (NSCS), hosted the first-ever Capacity Building Programme on Countering the Financing of Terrorism (CFT) for representatives from five Central Asian Republics (CARs). Held over two days, from April 21 to 22, 2025, in New Delhi, the program focused on cutting-edge threats involving cryptocurrencies, crowdfunding platforms, and the misuse of non-profit organizations (NPOs) for terrorism financing.

A Regional Effort for a Global Menace

The programme brought together high-ranking officials and counterterrorism experts from Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan, and Kyrgyzstan. It served not only as a technical knowledge-sharing platform but also as a powerful regional cooperation initiative to curb transnational terrorism financing threats.

Representatives from India’s premier enforcement and intelligence agencies – including the Financial Action Task Force (FATF) Cell of the Department of Revenue, the Ministry of Home Affairs, the National Investigation Agency (NIA), and the Financial Intelligence Unit – India (FIU-IND) – shared insights, experiences, and strategies aligned with global Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) frameworks.

Emphasis on Virtual Assets and Non-Traditional Financing Channels

With terrorism financing becoming increasingly sophisticated, the programme spotlighted the emerging risks associated with Virtual Asset Service Providers (VASPs) – including cryptocurrency exchanges and digital wallets – and their potential misuse by terrorist networks. Experts demonstrated how virtual currencies can circumvent traditional financial monitoring systems, emphasizing the importance of building robust regulatory and investigative capabilities to track these decentralized transactions.

An integral part of the event was the focus on crowdfunding platforms, which are increasingly being manipulated under the guise of humanitarian or religious causes to fund extremist activities. Discussions emphasized the development of legal, technical, and operational safeguards for monitoring online fundraising activities without undermining genuine philanthropic efforts.

The Role of NPOs in Terror Financing: A Dual-Edged Sword

The abuse of Non-Profit Organizations (NPOs) remains a key concern in the CFT landscape. While NPOs play a critical role in development and social welfare, their lack of oversight in some regions makes them vulnerable to infiltration by extremist entities. Sessions offered insights into FATF’s Recommendation 8, which specifically addresses risks to the non-profit sector, and explored tools for national authorities to identify red flags and conduct risk-based supervision without stifling civic engagement.

Expert Contributions and International Engagement

A key highlight was the participation of a senior analyst from the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) – a FATF-style regional body (FSRB). The expert provided a global perspective on AML/CFT compliance and shared region-specific case studies, particularly those relevant to the Central Asian context. This international input helped bridge regulatory and enforcement gaps between countries, reinforcing the importance of synchronized global standards.

An Interactive and Tailored Approach

The programme was designed with a customized curriculum tailored to the socio-political and financial environments of the participating CAR nations. Through interactive sessions, live case studies, and operational scenario walkthroughs, the training encouraged hands-on learning and exchange of investigative techniques.

Topics discussed included:

• Leveraging financial intelligence in national security operations

• Case-based learning on cryptocurrency tracing

• Detection of suspicious crowdfunding activities

• Identifying abuse indicators in NPO transactions

• Multi-agency coordination for effective CFT enforcement

Strengthening Collective Resilience

By enabling a cross-border understanding of terrorism financing threats and providing a technical training platform, India has taken a significant step in positioning itself as a regional leader in financial security and counterterrorism strategy.

Officials from the Department of Revenue underscored that this initiative is only the beginning. With growing geopolitical complexities and evolving financing mechanisms, continuous regional cooperation, data sharing, and joint investigations will be essential in thwarting the multifaceted threat of terrorism financing.

Looking Ahead

India plans to institutionalize such capacity-building engagements, potentially evolving them into recurring regional summits or working groups. This collaborative framework will help Central Asian partners strengthen legislative frameworks, upgrade digital forensic capabilities, and improve inter-agency communication—creating a resilient front against terrorism financing.

This path-breaking programme not only signals India’s proactive role in counterterrorism but also paves the way for greater strategic and security cooperation with Central Asia, reinforcing bonds built on mutual interests and shared threats.