Choking the flow of funds to terrorists is one of the vital aspects of combating terrorism. While its importance has been realized post 9/11 by the international community, counter measures for terrorist financing remain largely ineffective. In India, more resources and effort need to be devoted to launch a financial war against terrorists. In this context, the article attempts to establish the significance of emerging challenges in denying funds to terrorists globally and recommends a focused national response by outlining an integrated strategy.