NEW DELHI: At a time when the world is coming to terms with the horrific Paris attacks carried out by Islamic State, Prime Minister Narendra Modi on Wednesday called for “targeted economic sanctions” to choke terror funds generated through criminal activities.

Reiterating his statement at the G20 summit in Turkey where he urged a global, comprehensive response to combat terrorism, Modi said, “Disrupting fund flow constrains the capabilities of terrorists and reduces their ability to execute attacks. This involves putting in place both systemic safeguards, and targeted economic sanctions based on credible counter-terrorism intelligence.”

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Referring to the Paris attacks as “a grim reminder that terrorists have shown remarkable flexibility and adaptability in meeting their funding requirements”, the PM said, “They derive (this) funding from a variety of criminal activities which include smuggling of narcotics, bank robbery, vehicle theft, fake currency or from state sponsors and activities in failed states.”

Calling for concerted efforts to target proceeds of crime, Modi said, “There is an imperative need to focus our efforts to enhance international cooperation in the field of asset recovery for fighting crime, corruption and terrorism.”

The PM asked police and law enforcement agencies to forge formal and informal relationships to overcome legal hurdles in asset recovery across international boundaries.

India is particularly affected by this problem, where proceeds of crime are often sent to foreign countries by individuals/entities, a concern raised by intelligence agencies several times.

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Modi was addressing investigators from international probe agencies, Interpol, CBI, ED, diplomats and Indian intelligence and security agencies on Wednesday at the 6th Global Focal Point Conference on Asset Recovery at Vigyan Bhawan.

Asking investigators from 34 countries to focus on targeting the proceeds of crime, the PM said “dirty money drives out good money”. “Globalization of organized crime poses a major threat to economies throughout the world. Organized crime can hamper investment and economic growth. It can also infiltrate or control a large section of economy. Illicit funding promotes organized criminal activities like drug trafficking, arms trafficking, human trafficking and terrorism,” he said.

Expressing concern over economic liberalism and globalization leading to “increased ability to park profits of crimes anywhere”, the PM said, “Today, proceeds of crimes can be routed through dozens of countries within seconds. By a process of layering, the money trail can be concealed and investigation agencies are limited by national boundaries.”

Earlier, Interpol secretary general Jurgen Stock asked member countries to come together in the fight against terror and crimes that affected security of citizens. “Now more than ever, this family must stand united in its effort to prevent the repetition of what has happened against humanity in Paris last Friday, in Beirut and Ankara recently or in Mumbai in 2008," he said.

Stock said it was becoming increasingly challenging in the 21st century when the click of buttons could lead to huge illicit flows across borders.

CBI director Anil Sinha said the agency was discharging a broad spectrum of activities and responsibilities which supported the effective administration of justice and security of the nation by coordinating with Interpol in fighting transnational criminal threats.