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28/06/24 | 5:33 pm

FATF recognises India’s efforts to combat money laundering, terrorist financing

India has achieved an “outstanding outcome” in the 2023-24 Mutual Evaluation by the Financial Action Task Force (FATF). 

The evaluation by FATF highlights India’s effective measures to combat money laundering (ML) and terrorist financing (TF), including transitioning from a cash-based to a digital economy, implementing the JAM (Jan Dhan, Aadhaar, Mobile) Trinity, and enforcing strict cash transaction regulations, the finance ministry said in a release. 

Adopted during the FATF plenary in Singapore from June 26-28, the Mutual Evaluation Report places India in the ‘regular follow-up’ category, shared by only four other G20 countries. This milestone enhances India’s access to global financial markets, boosts investor confidence, and supports the global expansion of the Unified Payments Interface (UPI).

According to the the finance ministry, India’s high rating underscores its capacity to lead global efforts against cross-border terror financing and money laundering. 

Since 2014, legislative changes and enhanced enforcement have aligned India’s measures with international standards, effectively combating money laundering, terrorist financing and black money. Successful operations have dismantled terror funding networks and curbed the flow of illicit funds.

The Department of Revenue (DoR) led India’s engagement with FATF, supported by a multi-disciplinary team from various ministries, the National Security Council Secretariat (NSCS), state authorities, the judiciary, financial sector regulators, self-regulatory organizations, financial institutions, and businesses.

The Financial Action Task Force, established in 1989, is the international watchdog against money laundering, terrorist financing, and related threats. India has been a member since 2010.

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