Ibrahim is accused of heading a vast and sprawling illegal empire. His name has become a byword in political, business and law enforcement circles. After the Bombay Blasts in 1993, which Ibrahim organized and financed, he became India's most wanted man. After that incident, most of the his key Hindu mobsters and even few Muslims went against him bringing down his empire. In 2003, the United States Government declared Dawood Ibrahim a "global terrorist" and pursued the matter before the United Nations in an attempt to freeze his assets around the world and crack down on his operations after significant diplomatic lobbying by the government of India. The Bush Administration, under advisement from the Indian Government, has imposed sanctions on Ibrahim. Although Pakistan denies any knowledge of his existence, Indian intelligence agencies, such as Research and Analysis Wing (RAW), believe that Dawood currently resides in Karachi.
The United States Department of Treasury has also designated Ibrahim as a terrorist as part of its international sanctions program — effectively forbidding U.S. financial entities from working with him and seizing assets believed to be under his control. The Department of Treasury keeps a fact sheet on Ibrahim which contains reports of his syndicate having smuggling routes from South Asia, the Middle-East and Africa shared with and used by terrorist organisation al-Qaeda. The fact sheet also said that Ibrahim's syndicate is involved in largescale shipment of narcotics in the United Kingdom and Western Europe. He is also believed to have contacts with al-Qaeda leader Osama bin-Laden. In the late 1990s, Ibrahim traveled in Afghanistan under the Taliban's protection. The syndicate has consistently aimed to destabilize the Indian government through riots, terrorism and civil disobedience.
Washington added that they will request the United Nations to list Ibrahim "in pursuance of relevant Security Council resolutions". The UN listing will require that all UN member states freeze Ibrahim's assets and impose a travel ban. Juan Zarate, the Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, said that they are committed to identifying and attacking financial ties between terrorism and the underworld. Dawood is also suspected to have connections with terrorist organisations, and in 2002 was linked to the financing of increasing attacks in Gujarat by Lashkar-e-Toiba. New Delhi handed over to Islamabad a list of 38 most wanted criminals, including Ibrahim.
Dawood Ibrahim heads an organization known as the D-Company which carries out billions of dollars of operations in Bombay alone, he is believed to control much of the 'hawala' system, which is the very commonly used unofficial system for transferring money and remittances outside the view of official agencies. Much of the organisation's operations are in India, allegedly with the support of Government of Pakistan and the Inter-Services Intelligence (ISI).
His ties with Sicilian mafia leader and other international organizations are not confirmed yet, but it is believed that the base supply of drugs and its raw materials are managed by him. Being close to Afghanistan gives him an advantage, since raw materials are made in Afghanistan. His gang members are active in Europe and other continents. The supply goes to Europe and from there to the U.S. and other countries.
Dawood Ibrahim's daughter married the son of a former Pakistan National Cricket Team captain, Javed Miandad. It was much talked about that Dawood Ibrahim was not present at the wedding. Javed Miandad told the press that his son and Dawood's daughter met while studying together in the UK.
A recent investigation carried out by an Indian news agency showed evidence that Dawood may be residing in Mali. These evidences involve a passport of Dawood Ibrahim from the state of Mali which investigators believe that he may be using now.
According to the leading Indian newspaper, The Times of India, Pakistan's Inter-Services Intelligence (ISI) is learnt to have taken don Dawood Ibrahim into custody, along with his trusted lieutenant Chhota Shakeel and the mastermind of the 1993 Mumbai blasts, Tiger Memon. But the Pakistan authorities deny of any knowledge.