Financial Action Task Force's thumbs-up places India in select group of countries list
- In Reports
- 10:47 PM, Jun 28, 2024
- Myind Staff
India has achieved an exceptional outcome in the Mutual Evaluation conducted by the Financial Action Task Force (FATF) during 2023-24.
The evaluation report of India, adopted at the FATF plenary held in Singapore from June 26-28, places India in the 'regular follow-up' category, a distinction shared by only four other G20 countries. This marks a significant milestone in the nation's efforts to combat money laundering (ML) and terrorist financing (TF).
Among other things, the FATF recognised the efforts made by India in mitigating the risks arising from money laundering (ML) and terrorist financing (TF), including the laundering of proceeds from corruption, fraud, and organised crime. The FATF noted the effective measures implemented by India to transition from a cash-based to a digital economy, thereby reducing ML/TF risks. Additionally, the implementation of the JAM (Jan Dhan, Aadhaar, Mobile) Trinity, along with stringent regulations on cash transactions, has led to a significant increase in financial inclusion and digital transactions. These measures have made transactions more traceable, thereby mitigating ML/TF risks and enhancing financial inclusion.
India’s performance on the FATF Mutual Evaluation accrues significant advantages to its growing economy, as it demonstrates the overall stability and integrity of the financial system.
Good ratings will lead to better access to global financial markets and institutions and increase investor confidence. It will also help in the global expansion of the Unified Payments Interface (UPI), India’s fast payment system. As a member of the FATF Steering Group, India's current performance will provide an opportunity to contribute significantly to the group's overall functioning.
This recognition from the FATF is "testament to the rigorous and effective measures implemented by India over the last 10 years to safeguard its financial system from ML/TF threats", said a statement by the Union finance ministry.
"It underscores the country’s commitment to international standards and its proactive stance in the global fight against financial crimes. This sets a benchmark for countries in our region to effectively implement international standards on terrorist financing. India's excellent rating will enhance the capacity of our country to lead the global effort on countering cross-border terror financing and money laundering," the ministry said.
It further stated that India remains committed to further strengthening its AML/CFT framework and continuing its collaboration with international partners to combat financial crimes.
"The nation will build on this success to ensure a secure and transparent financial environment for all," it added.
Image source: Times of India
Comments