• UGI USER
  • Jun 29, 2024
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INDIA ACHIEVES ‘OUTSTANDING OUTCOME’ IN FATF EVALUATION

Why in News ?

India has achieved an exceptional outcome in the 2023-24 mutual evaluation conducted by the Financial Action Task Force (FATF).

Source-TH
About FATF-

  • The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 to develop policies to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
  • Members: FATF currently has 39 members including India.
  • Objectives: The primary objectives of FATF are to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats.
  • Black and Grey Lists: FATF maintains two lists to identify countries with weak measures to combat money laundering and terrorist financing. The “Black List” includes high-risk jurisdictions, while the “Grey List” includes countries under increased monitoring.

About the News –

  • Regular Follow-Up Category: The Mutual Evaluation Report, adopted at the FATF plenary in Singapore from June 26-28, places India in the “regular follow-up” category.
  • This distinction is shared by only four other G-20 countries.
  • Significant Milestone: This achievement marks a significant milestone in India’s efforts to combat money laundering (ML) and terrorist financing (TF).
  • High Technical Compliance: The FATF concluded that India has reached a high level of technical compliance with FATF requirements, showcasing a robust anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) regime.
  • International Cooperation: India’s regime has been effective in international cooperation, accessing beneficial ownership information, using financial intelligence, and depriving criminals of their assets.
  • Efforts Recognized: The FATF recognized India’s efforts to mitigate ML/TF risks, including the laundering of proceeds from corruption, fraud, and organized crime.
  • Government Statement: The Indian government highlighted this recognition as a testament to the rigorous measures implemented over the last 10 years to safeguard the financial system from ML/TF threats.