India has received praise from the Financial Action Task Force (FATF) for its efforts in achieving a high level of technical compliance with international standards to combat illicit finance, money laundering, and terrorist financing. In a joint assessment conducted by the FATF, the Asia-Pacific Group on Money Laundering (APG), and the Eurasian Group (EAG), India was commended for its progress in addressing financial crimes, but was also advised to focus on certain areas for further improvement.
The report presented in Paris highlighted India’s advancements in tackling financial crimes, while also emphasizing the need for continued enhancements. As India’s economy and financial system continue to grow, the FATF stressed the importance of ensuring that cases related to money laundering and terrorist financing are effectively dealt with, and called for the adoption of a risk-based approach to safeguard non-profit organizations from being misused for terrorist financing purposes.
While India has made significant strides in establishing an anti-money laundering and counter-terrorism financing (AML/CFT) framework, there are certain sectors that are still in the early stages of development. The FATF specifically pointed out the need for better implementation of preventive measures by the non-financial sector and virtual asset service providers, as well as improved supervision of these sectors. The report also highlighted the importance of enhancing implementation of cash restrictions by dealers in precious metals and stones due to the significance of this sector in terms of potential money laundering risks.
India’s financial authorities were commended for their coordination and international cooperation efforts, but the report also noted the importance of addressing delays in financial crime prosecutions. As a result of the assessment, India has been placed in ‘regular follow-up’ status and will report back to the FATF Plenary in three years to provide updates on the progress made in addressing the identified areas for improvement.
What are your thoughts on the FATF’s assessment of India’s financial crime measures and its call for further progress in key sectors? Share your opinions in the comments section below.