In a significant boost to India’s efforts to combat financial crimes, the Financial Action Task Force (FATF) has placed the country in the “Regular Follow-up” category, recognising its high level of technical compliance with global standards.
The FATF, an inter-governmental body that sets standards for anti-money laundering (AML) and counter-terrorist financing (CFT), released its mutual evaluation report on India on Thursday. The report acknowledges India’s significant progress in implementing measures to tackle illicit finance.
“India has made substantial progress in strengthening its AML/CFT framework, demonstrating a strong commitment to fighting financial crime,” the FATF stated.
Key highlights of the report include:
- The Enforcement Directorate (ED) confiscated assets worth Rs 16,537 crore between 2018 and October 2023.
- The ED facilitated restitution of Rs 141.3 billion to banks in the Vijay Mallya case.
- Effective investigation and prosecution of complex money laundering cases, including cross-border transactions and “hawala” operations.
- Robust legislative framework, including the Benami Transactions (Prohibition) Act, Income Tax Act, and Fugitive Economic Offenders Act.
The National Investigation Agency (NIA) and ED have also demonstrated their ability to effectively investigate and prosecute terror financing cases, with access to operational intelligence on terrorism and terror financing.
India joins an elite group of only four G20 countries to achieve this status, demonstrating its leadership in combating financial crimes.
“This achievement is a testament to India’s unwavering commitment to upholding global standards in AML/CFT,” said a senior government official. “We will continue to strengthen our framework to ensure a secure and transparent financial system.”
The FATF’s recognition is expected to boost investor confidence and reinforce India’s position as a responsible player in the global financial system.
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