India Shines in 2023-24 FATF Evaluation for Fighting Money Laundering and Terrorist Financing
New Delhi [India], June 28: India has achieved an ‘outstanding outcome’ in the 2023-24 Mutual Evaluation conducted by the Financial 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). The FATF recognized India’s comprehensive measures in mitigating risks arising from ML and TF, including the laundering of proceeds from corruption, fraud, and organized crime. Effective measures include transitioning from a cash-based to a digital economy, implementing the JAM (Jan Dhan, Aadhaar, Mobile) Trinity, and enforcing stringent regulations on cash transactions.
India’s performance in the FATF Mutual Evaluation brings substantial benefits to the country’s growing economy. High ratings will enhance access to global financial markets, boost investor confidence, and support the global expansion of India’s Unified Payments Interface (UPI). This recognition highlights the rigorous and effective measures implemented by India over the past decade to safeguard its financial system from ML/TF threats.
Since 2014, the Indian government has enacted a series of legislative changes and enhanced enforcement efforts to tackle ML, TF, and black money. Indian authorities have successfully dismantled terror funding networks using actionable intelligence inputs. Over two years, the Department of Revenue (DoR) spearheaded India’s engagement with FATF during the mutual evaluation process, driven by exceptional efforts from a diverse, multi-disciplinary team.
India remains committed to further strengthening its AML/CFT framework and continuing collaboration with international partners to combat financial crimes, ensuring a secure and transparent financial environment for all.
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 to combat money laundering, terrorist financing, and other related threats to the international financial system. India became a member of FATF in 2010.
