New Delhi [India], India has achieved an "outstanding result" in the Mutual Evaluation 2023-24 conducted by the Financial Action Task Force (FATF).
The Mutual Evaluation Report, adopted during the FATF plenary session held in Singapore from June 26 to 28, placed India in the "regular monitoring" category, a distinction shared only by four other G20 countries. This marks a major milestone in India's efforts to combat money laundering (ML) and terrorist financing (TF), according to a statement from the Ministry of Finance.
The statement said the FATF has recognized India's comprehensive measures to mitigate risks arising from ML and TF, including money laundering from corruption, fraud and organized crime.
It includes effective measures for transitioning from a cash-based economy to a digital economy, reducing ML/TF risks and implementation of JAM (Jan Dhan, Aadhaar, Mobile) Trinity and strict regulations on cash transactions, significantly increasing inclusion finance and digital transactions. make transactions more traceable and reduce ML/TF risks.
India's performance in the FATF Mutual Evaluation brings substantial benefits to the country's growing economy, as it highlights the stability and integrity of its financial system.
According to the ministry, the high ratings will improve access to global financial markets and institutions, boost investor confidence and support the global expansion of India's fast payments system, the Unified Payments Interface (UPI).
This FATF recognition highlights the rigorous and effective measures implemented by India over the last decade to safeguard its financial system from ML/TF threats. It sets a benchmark for other countries in the region to effectively implement international standards on terrorist financing.
India's excellent rating enhances its ability to lead global efforts to counter cross-border terrorist financing and money laundering.
Since 2014, the Indian government has enacted a series of legislative changes and enhanced law enforcement efforts to address money laundering, terrorist financing and black money. This multi-pronged strategy has aligned these measures with international standards and has proven effective.
Indian authorities have been successful in dismantling the terror financing network using actionable intelligence. These operations have stopped the flow of terrorist financing, black money and narcotics, including along the coast.
The statement said that for two years, the Department of Revenue (DoR) led India's engagement with the FATF during the mutual evaluation process. This success was driven by exceptional efforts and contributions of a diverse and multidisciplinary team comprising representatives of various ministries, the National Security Council Secretariat (NSCS), state authorities, the judiciary, financial sector regulators, self-regulatory organizations, financial institutions , and business. This collaborative effort demonstrated India's effective AML/CFT (anti-money laundering and counter-terrorism financing) framework.
The current performance of India, which is already a member of the FATF Steering Group, provides an opportunity to contribute significantly to the overall functioning of the group. India remains committed to further strengthening its AML/CFT framework and continuing collaboration with international partners to combat financial crimes and build on its success to ensure a safe and transparent financial environment for all, the statement said.
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 as an 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 FATF in 2010.
The Mutual Evaluation Report, adopted during the FATF plenary session held in Singapore from June 26 to 28, placed India in the "regular monitoring" category, a distinction shared only by four other G20 countries. This marks a major milestone in India's efforts to combat money laundering (ML) and terrorist financing (TF), according to a statement from the Ministry of Finance.
The statement said the FATF has recognized India's comprehensive measures to mitigate risks arising from ML and TF, including money laundering from corruption, fraud and organized crime.
It includes effective measures for transitioning from a cash-based economy to a digital economy, reducing ML/TF risks and implementation of JAM (Jan Dhan, Aadhaar, Mobile) Trinity and strict regulations on cash transactions, significantly increasing inclusion finance and digital transactions. make transactions more traceable and reduce ML/TF risks.
India's performance in the FATF Mutual Evaluation brings substantial benefits to the country's growing economy, as it highlights the stability and integrity of its financial system.
According to the ministry, the high ratings will improve access to global financial markets and institutions, boost investor confidence and support the global expansion of India's fast payments system, the Unified Payments Interface (UPI).
This FATF recognition highlights the rigorous and effective measures implemented by India over the last decade to safeguard its financial system from ML/TF threats. It sets a benchmark for other countries in the region to effectively implement international standards on terrorist financing.
India's excellent rating enhances its ability to lead global efforts to counter cross-border terrorist financing and money laundering.
Since 2014, the Indian government has enacted a series of legislative changes and enhanced law enforcement efforts to address money laundering, terrorist financing and black money. This multi-pronged strategy has aligned these measures with international standards and has proven effective.
Indian authorities have been successful in dismantling the terror financing network using actionable intelligence. These operations have stopped the flow of terrorist financing, black money and narcotics, including along the coast.
The statement said that for two years, the Department of Revenue (DoR) led India's engagement with the FATF during the mutual evaluation process. This success was driven by exceptional efforts and contributions of a diverse and multidisciplinary team comprising representatives of various ministries, the National Security Council Secretariat (NSCS), state authorities, the judiciary, financial sector regulators, self-regulatory organizations, financial institutions , and business. This collaborative effort demonstrated India's effective AML/CFT (anti-money laundering and counter-terrorism financing) framework.
The current performance of India, which is already a member of the FATF Steering Group, provides an opportunity to contribute significantly to the overall functioning of the group. India remains committed to further strengthening its AML/CFT framework and continuing collaboration with international partners to combat financial crimes and build on its success to ensure a safe and transparent financial environment for all, the statement said.
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 as an 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 FATF in 2010.
