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 Jaish-e-Mohammad is funding terrorists in J&Ks

Funds are arranged by JeM higher ups in Pakistan. J&K based commanders are generally in touch with Mufti Asgar - launching commander based in Pakistan occupied Kashmir (PoK) who gives general directions and funds. JeM has found Hawala channels of receiving money in J&K quite risky and undependable. First break down of any Hawala channel results in complete disruption of flow of money till alternative arrangements are made which takes a lot of time. 

i) Local JeM commander scouts his area for people who have relations in countries other than Pakistan, particularly in the Arab world. Once the Valley based relation is found agreeable, he is asked to seek consent of his relative and provide his address and account number in that country. Once this is done, money to the tune of Rs 1-2 lakh is deposited there and he sends in small amounts to Valley based relations through normal banking channels. Valley based A/C holder then provides money to militants. This method has by and large been found to be effective with minimal risk.

ii) Hajis, identified well in advance are taken into confidence. During Haj or Umrah, they are contacted by JeM operatives in Saudi Arabia and amounts worth few lakhs are sent through them for payment to cadres.

iii) Through passengers on Srinagar - Muzaffarabad - Teetwal route. Valley based JeM commanders are on the look out for such cases and are approached through trusted OGWs (Over Ground Workers) for the task.

In all these cases, people who help the outfit in transferring the money are given commission so as to keep their interest alive.

 According to intelligence assessment report accessed by India Today TV, JeM is functioning openly all over Pakistan including Pakistan occupied Kashmir (PoK) despite a ban. Masood Azhar, its founder, however, is not seen in public often nowadays. He is generally inaccessible to district level and lower functionaries of the tanzeem (outfit). It draws its inspiration from Deoband School of thought. Central office of JeM is in Haripur in North West Frontier Province (NWFP) with offices at Daska, Bhawalpur (both in Punjab) and Karachi and Quetta in Sindh and Balochistan respectively.

JeM generally conducts big congregations twice a year at Haripur and Bhawalpur. The tanzeem has huge infrastructure including offices and property in the name of local trusts / NGOs and charitable organizations. It runs a chain of educational institutions in different names and has built a huge hospital in Muzaffarabad.
JeM does not have any institutionalized linkages with any wing of the government: Federal or Provincial. The tanzeem has been under surveillance of Pakistan agencies for the last few years but no step has ever been taken by the authorities to crack the whip. Once JeM was banned, it put up different sign boards in its offices across Pakistan.
Pakistani authorities whether the Musharraf government, the PPP government or the present Nawaz Sharif government does not take any action on Masood Azhar or JeM on the ground because of the perception that this could result in huge retaliatory action and law and order problem for the authorities as Masood Azhar has created a niche in a vocal section of Muslim society.
JeM has three very well established training centres in Balakot, Bhimber and Bhawalpur. These centres are run from local mosques that have other infrastructure in place.
Main communication centre is located at a high mountain - one day climb from Dudhniyal in Pakistan occupied Kashmir. It is known as Tuba. Besides, there are three relay stations located in PoK across Poonch and Murree and Sialkot. As of today, the wireless communication is of hardly any value but JeM has not closed down the same as it is seen as a stand by communication facility as in any hostility mobile / land line telephony would stop between India and Pakistan. This facility could have been used to communicate through wireless handsets that terrorists were carrying during Pathankot attack.

Spread in Pakistan:
JeM has a well spread out network all over Pakistan particularly in Punjab and Sindh provinces. Mosques and religious educational institutions are targets. Youth are approached through
Semi-literate boys in the age group of 15-18 years are the particular target and semi-urban areas are seen as fertile ground for recruitments as level of unemployment is quite high in such areas. The level of misinformation spread out with regard to condition of Muslims in India and particularly in Kashmir is so serious that a large section of semi-educated youth get attracted for 'Jihad'.