Blitz Bureau
THE Financial Action Task Force (FATF) has lauded India’s efforts to tackle illicit finance and cautioned the country about serious threats from groups like ISIL and Al Qaeda.
In a statement posted on X, FATF highlighted, “India achieved a high level of technical compliance with the FATF recommendations and has taken substantial measures to tackle illicit finance. However, it must continue to enhance its system as its economy and financial landscape expand.”
The joint FATF-APG-EAG report acknowledged India’s anti-money laundering and counter-terrorist financing (AML/CFT) framework, which has yielded positive outcomes, including improved risk understanding, better access to beneficial ownership information, and the successful deprivation of criminal assets. Indian authorities were also praised for their effective use of financial intelligence and cooperation, both domestically and internationally.
Despite the accolades, the FATF urged India to focus on concluding prosecutions and ensuring appropriate sanctions for terrorist financiers. The report stated, “India faces serious terrorism and terrorist financing threats, including those related to ISIL and Al Qaeda. While India places a strong emphasis on disruption and prevention and has demonstrated its capability in complex financial investigations, it must continue to refine its systems, particularly in completing money laundering and terrorist financing trials and ensuring offenders receive suitable penalties.”
The FATF also emphasised the importance of adopting a risk-based and educative approach with non-profit organisations, stressing that measures should be implemented to prevent the abuse of the non-profit sector for terrorist financing.
The report also lauded India’s efforts in financial inclusion, noting that the country has more than doubled the proportion of its population with bank accounts, promoted digital payment systems, and implemented simplified due diligence for small accounts. These initiatives have bolstered financial transparency, supporting broader AML/CFT efforts.
