Team Blitz India
NEW DELHI: India has achieved an outstanding outcome in the 2023-24 Mutual Evaluation conducted by theFinancial Action Task Force (FATF).The Mutual Evaluation Report, adopted during the FATF plenary held in Singapore from June 26 to June 28, placed India in the ‘regular follow-up’ category, a distinction shared by only four other G20 countries. This marks a significant milestone in India’s efforts to combat money laundering (ML) and terrorist financing (TF), a Finance Ministry release said.
The release said FATAhas recognized India’s comprehensive measures in mitigating risks arising from ML and TF, including the laundering of proceeds from corruption, fraud, and organized crime.
It includes effective measures to transition from a cash-based to a digital economy, reducing ML/TF risks and Implementation of the JAM (Jan Dhan, Aadhaar, Mobile) Trinity and stringent regulations on cash transactions, significantly increasing financial inclusion and digital transactions, making transactions more traceable and reducing ML/TF risks.
India’s performance in the FATF Mutual Evaluation brings substantial benefits to the country’s growing economy as it highlights the stability and integrity of its financial system.
According to the ministry, the high ratings will enhance access to global financial markets and institutions, boost investor confidence, and support the global expansion of India’s fast payment system, the Unified Payments Interface (UPI).
This recognition from FATF highlights the rigorous and effective measures implemented by India over the past decade to safeguard its financial system from ML/TF threats. It sets a benchmark for other countries in the region to effectively implement international standards on terrorist financing.
