The Monetary Motion Activity Pressure (FATF) has recognised India’s sturdy measures in combatting cash laundering and terrorist financing, as revealed within the Mutual Analysis Report adopted throughout the FATF plenary held in Singapore between June twenty sixth and June twenty eighth, 2024, the Ministry of Finance said. The FATF is an intergovernmental organisation established in 1989 because the worldwide watchdog to fight cash laundering, terrorist financing, and different associated threats to the integrity of the worldwide monetary system. India grew to become a member of FATF in 2010.
The Ministry of Finance issued a press release highlighting India’s “excellent end result” within the 2023-24 Mutual Analysis. The report locations India within the ‘common follow-up’ class, a distinction shared by solely 4 different G20 nations.
The FATF has recommended India for its proactive measures, significantly in mitigating dangers arising from cash laundering and terrorist financing. This consists of tackling the laundering of proceeds from corruption, fraud, and organised crime. A key spotlight is India’s transition from a cash-based to a digital financial system, considerably lowering cash laundering/terrorist financing dangers.
“This recognition from the FATF is a testomony to the rigorous and efficient measures applied by India over the past 10 years to safeguard its monetary system from ML/TF threats,” the assertion continued. It emphasises India’s dedication to worldwide requirements and its proactive stance within the world combat towards monetary crimes.
“It underscores the nation’s dedication to worldwide requirements and its proactive stance within the world combat towards monetary crimes. This units a benchmark for nations in our area to successfully implement worldwide requirements on terrorist financing. India’s wonderful ranking will improve the capability of our nation to steer the worldwide effort on countering cross border terror financing and cash laundering,” the ministry said.
Since 2014, the Indian authorities has enacted a sequence of legislative modifications and bolstered enforcement efforts to sort out cash laundering, terrorist financing, and black cash, the ministry famous. “Since 2014, the Authorities has enacted a sequence of legislative modifications and bolstered enforcement efforts to sort out ML, TF, and black cash. This multi-pronged technique has introduced these measures consistent with worldwide requirements and has demonstrably confirmed to be efficient, yielding optimistic outcomes. Indian authorities have had success in dismantling the phobia funding community utilizing actionable intelligence inputs. These operations have stemmed the movement of terror funding, black cash, and narcotics, even alongside the shoreline,” it said.
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India’s Efficiency On FATF Mutual Analysis Accrues Vital Benefits To Our Rising Financial system: Ministry Of Finance
The implementation of the JAM (Jan Dhan, Aadhaar, Cell) Trinity, alongside stringent laws on money transactions, has markedly elevated monetary inclusion and digital transactions. These measures have made transactions extra traceable, thereby mitigating ML/terrorist financing dangers and enhancing monetary inclusion.
The Ministry of Finance famous, “India’s efficiency on the FATF Mutual Analysis accrues vital benefits to our rising financial system, because it demonstrates the general stability and integrity of the monetary system.” This recognition is anticipated to enhance India’s entry to world monetary markets and establishments, increase investor confidence, and assist the worldwide growth of the Unified Funds Interface (UPI), India’s quick cost system.
The Division of Income (DoR) spearheaded India’s engagement with FATF throughout the mutual analysis course of. This success was pushed by the distinctive efforts of a various, multi-disciplinary staff comprising representatives from numerous ministries, the Nationwide Safety Council Secretariat (NSCS), state authorities, the judiciary, monetary sector regulators, self-regulatory organisations, monetary establishments, and companies, the ministry famous.
It said that India, already a member of the FATF Steering Group, will use this chance to contribute considerably to the group’s general functioning.