iNDICA NEWS BUREAU-
The Financial Action Task Force (FATF) said in a statement recently that India has achieved a commendable level of technical compliance with its requirements, and the country’s efforts in Anti-Money Laundering (AML), Countering Terrorist Financing (CFT), and Countering the Proliferation of Weapons of Mass Destruction (CPF) have yielded positive outcomes.
India has achieved remarkable success in the Mutual Evaluation conducted by the FATF during 2023-24. The Mutual Evaluation Report of India, adopted at the FATF plenary in Singapore from June 26 to June 28, 2024, categorizes India under ‘regular follow-up,’ a distinction held by only four other G20 countries.
This milestone underscores India’s significant strides in combating money laundering (ML) and terrorist financing (TF). Established in 1989, the Financial Action Task Force (FATF) is an intergovernmental organization tasked with overseeing global efforts to combat money laundering, terrorist financing, and other threats to the integrity of the international financial system.
India joined FATF as a member in 2010.
FATF has acknowledged India’s efforts in several areas, including:
Addressing risks associated with money laundering (ML) and terrorist financing (TF), particularly concerning the laundering of proceeds from corruption, fraud, and organized crime.
Implementing effective measures to shift from a cash-based to a digital economy, aimed at reducing ML/TF risks.
Introducing the JAM (Jan Dhan, Aadhaar, Mobile) Trinity and stringent regulations on cash transactions. These initiatives have significantly enhanced financial inclusion and digital transactions, making it more traceable, and thereby mitigating ML/TF risks.
India’s performance in the FATF Mutual Evaluation brings substantial benefits to its burgeoning economy, showcasing the stability and integrity of its financial system.
Positive ratings promise improved access to global financial markets and institutions, boosting investor confidence.
Additionally, it supports the global expansion of the Unified Payments Interface (UPI), India’s rapid payment system.
This recognition from FATF underscores India’s decade-long commitment to implementing rigorous measures safeguarding its financial system from money laundering (ML) and terrorist financing (TF) threats.
It sets a benchmark for regional countries to adopt international standards effectively in combating terrorist financing.
India’s outstanding rating enhances its capacity to lead global efforts against cross-border terror financing and money laundering.
Since 2014, India has enacted legislative changes and strengthened enforcement to combat ML, TF, and illicit funds effectively. These efforts align with international standards and have proven successful, particularly in disrupting terror funding networks based on actionable intelligence. Operations have curbed the flow of terror funds, illicit money, and narcotics, even along coastlines.
According to experts, this recognition from FATF suggests that India is making significant strides in strengthening its financial regulatory system to combat illicit financial activities and ensure compliance with international standards, aimed at maintaining global financial stability and security.
