This milestone underscores India’s significant strides in combating money laundering and terrorist financing: FATA
India has achieved a commendable level of technical compliance with Financial Action Task Force (FATF) requirements, and its efforts in Anti-Money Laundering (AML), Countering Terrorist Financing (CTF), and Counter Proliferation Financing (CPF) have yielded positive outcomes, according to a statement by FATF.
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).
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 transactions 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 to safeguard 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.
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.
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There is a cost to launder the money. The launderers are are no angels, the costs extracted for laundering has to be used in illegal Arms, Drugs and human trafficking to generate adequate profit to fund the terror activities. The ultimate target of the PMLA is terror funding which automatically attacks the illegal arms, Druga and human trafficking.
The remarkable success achieved by India in MUTUAL EVALUATION is result of the PMLA and it’s stringent provisions. The LAUNDERERS and their supporters from the legal fraternity under the garb of human rights and constitutional provisions have been proved wrong and should stop trying to grab the headlines.
The lawmakers should discuss this issue on the floor of the house ON PROIRITY and put and end to talk of diluting the provisions under PMLA because all those accused under PMLA are potentially guilty of ILLEGAL ARMS, DRUGS AND HUMAN TRAFFICING FOR EVENTUALLY TERROR FINANCING AND MUST BE DELT WITH AS SUCH. This is much worse than the NEET PAPER LEAKS and affects the entire country not only 23 LAKH students.