FATF lauds India’s efforts to curb money laundering

Evaluation report at FATF plenary positions India in ‘regular follow-up’ category, a distinction shared by only 4 other G20 countries
FATF lauds India’s efforts to curb money laundering

NEW DELHI: India has received high praise from the Financial Action Task Force (FATF) for its exceptional performance in the Mutual Evaluation conducted during 2023-24.

The recently adopted Mutual Evaluation Report of India at the Financial Action Task Force plenary in Singapore positions the nation in the ‘regular follow-up’ category, a distinction shared by only four other G20 countries, as per the finance ministry.

This recognition underscores India’s commitment to combating money laundering (ML) and terrorist financing (TF). the Financial Action Task Force specifically acknowledged India’s proactive measures in money laundering and terrorist financing risks, including addressing the laundering of proceeds from corruption, fraud, and organized crime. India’s successful transition from a cash-based economy to a digital one, aimed at reducing money laundering and terrorist financing risks, also received commendation.

The Financial Action Task Force (FATF) is an intergovernmental organisation established in 1989 as the international watchdog to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. India became a member of the Financial Action Task Force in 2010.

According to a finance ministry press statement, the implementation of the JAM (Jan Dhan, Aadhaar, Mobile) Trinity, coupled with stringent regulations on cash transactions, has not only boosted financial inclusion and digital transactions but has also made transactions more traceable, thereby effectively mitigating ML/TF risks while enhancing financial inclusion.

“India’s performance on the the Financial Action Task Force Mutual Evaluation holds major advantages for country’s growing economy, as it demonstrates the overall stability and integrity of the financial system. Good ratings will lead to better access to global financial markets and institutions and increase investor confidence. It will also help in the global expansion of the Unified Payments Interface (UPI), India’s fast payment system,” the ministry said.

According to the ministry press statement, Indian government since 2014 has implemented a series of legislative changes and intensified enforcement actions to combat money laundering, terrorist financing, and black money.

The Indian authorities have successfully disrupted terror funding networks using actionable intelligence inputs, leading to significant reductions in the flow of terror financing, black money, and narcotics, even along coastal areas.

‘Recognition underscores India’s commitment’

This recognition underscores India’s commitment to combating money laundering (ML) and terror financing (TF). FATF recognises India’s measures in ML/TF risks, including addressing laundering of proceeds from corruption, fraud, and crime. India’s transition from a cash economy to a digital one, aimed at reducing ML/TF risks, received commendation

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