India achieves ‘outstanding outcome’ in FATF evaluation
- India has achieved an outstanding outcome in the mutual evaluation conducted during 2023-24 by the Financial Action Task Force (FATF)
Highlights:
- The Mutual Evaluation Report of India, which was adopted at the FATF plenary held in Singapore, places India in the “regular follow-up” category, a distinction shared by only four other G-20 countries.
- This marks a significant milestone in the nation’s efforts to combat money laundering (ML) and terrorist financing (TF)
- In a statement, the FATF said the plenary concluded that India had reached a high level of technical compliance with its requirements.
- The country’s anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) regime was achieving good results, including international cooperation, access to basic and beneficial ownership information, use of financial intelligence, and depriving criminals of their assets.
- However, the FATF observed that improvements were needed to strengthen the supervision and implementation of preventive measures in some non-financial sectors.
- Among other things, the FATF has recognised the efforts made by India on the issue of mitigating the risks arising from ML/TF, including the laundering of proceeds from corruption, fraud, and organised crime, and the effective measures implemented by India to transition from a cash-based to a digital economy to reduce ML/TF risks.
Prelims Takeaway
- FATF