The Financial Action Task Force (FATF) has given India high marks for its outstanding performance in the Mutual Evaluation that was held in 2023–2024.
India is a Regular follow-up' country
According to the finance ministry, India is classified as a "regular follow-up" country in the Mutual Evaluation Report that was recently presented at the Financial Action Task Force in Singapore. There are only four other G20 countries that have achieved this classification.
India's dedication to preventing the funding of terrorism and money laundering is emphasized by this recognition. The Financial Action Task Force commended India in particular for its proactive approaches to mitigating the risks of money laundering and terrorist financing.
Which includes handling the proceeds of fraud, organized crime, and corruption. Recognition was also given to India's effective shift from a cash-based economy to a digital one, which was intended to lower the risks of money laundering and terrorist financing.
India's performance FATF evaluation
India's performance on the Financial Action Task Force Mutual Evaluation shows the general stability and integrity of the financial system, which is very beneficial for the nation's expanding economy.
A strong rating will boost investor confidence and provide easier access to international financial markets and institutions. Additionally, the Unified Payments Interface (UPI), India's quick payment system, will benefit from its global expansion, according to the ministry.
Implementation of JAM (Jan Dhan, Aadhaar, Mobile)
According to the finance ministry, the JAM (Jan Dhan, Aadhaar, Mobile) Trinity's implementation, along with strict cash transaction regulations, has increased digital transactions and financial inclusion while also making transactions more traceable and effectively reducing funding for terrorism and money laundering risks.
The Finance Ministry added, the Indian government has been fighting money laundering, terrorist financing, and black money since 2014. To this end, it has enacted several new laws and stepped up enforcement measures.
By employing actionable intelligence inputs, Indian authorities have effectively disrupted networks that finance terrorism, resulting in notable decreases in the flow of drugs, black money, and terror funding, even in coastal areas.
Financial Action Task Force (FATF)
Established in 1989 as an international watchdog to combat money laundering, financing of terrorism, and other related threats to the integrity of the global financial system, the Financial Action Task Force (FATF) is an intergovernmental organization. India joined the Financial Action Task Force in 2010.
