Key Points:
High Level of Technical Compliance: India has achieved a high level of compliance with FATF requirements.
Effective AML/CFT/CPF Regime: India's anti-money laundering (AML), counter-financing of terrorism (CFT), and counter-proliferation financing (CPF) measures are effective in several areas. Understanding of money laundering (ML) and terrorist financing (TF) risks.
International cooperation.
Access to basic and beneficial ownership information.
Use of financial intelligence.
Depriving criminals of their assets.
Counter-proliferation financing measures.
Areas Needing Improvement:
Strengthening supervision and implementation of preventive measures in non-financial sectors.
Addressing delays in concluding ML and TF prosecutions.
Ensuring that CFT measures for the non-profit sector are risk-based and involve outreach to these
Context:
The FATF discussed and adopted the joint FATF/APG/EAG mutual evaluation report of India which assessed the effectiveness of India’s measures to combat money laundering, terrorist financing and proliferation financing, and their compliance with the FATF Recommendations.
The Plenary concluded that India has reached a high level of technical compliance with the FATF requirements and its AML/CFT/CPF regime is achieving good results, including in its ML and TF risk understanding, international cooperation, access to basic and beneficial ownership information, use of financial intelligence, and depriving criminals of their assets and counter-proliferation financing measures.
What is Money Laundering?
However, improvements are needed to strengthen the supervision and implementation of preventive measures in some of the non-financial sectors. India also needs to address delays relating to concluding ML and TF prosecutions, and to ensure that CFT measures aimed at preventing the non-profit sector from being abused for TF are implemented in line with the risk-based approach, including by conducting outreach to NPOs on their TF risks.
The FATF will publish the report after the FATF’s quality and consistency review is completed.
What is FATF?
The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. The 40-member body sets international standards to ensure national authorities can effectively go after illicit funds linked to drugs trafficking, the illicit arms trade, cyber fraud and other serious crimes.
The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action. In total, more than 200 countries and jurisdictions have committed to implement the FATF’s Standards as part of a co-ordinated global response to preventing organised crime, corruption and terrorism. Countries and jurisdictions are assessed with the help of nine
FATF Associate Member organisations and other global partners, the IMF and World Bank.
The FATF's decision-making body, the FATF Plenary, meets three times per year and holds countries to account if they do not comply with the Standards. If a country repeatedly fails to implement FATF Standards then it can be named a Jurisdiction under Increased Monitoring or a High Risk Jurisdiction. These are often externally referred to as “the grey and black lists”.
The FATF was established in 1989 and is based in Paris.
What is PMLA ACT 2002: https://www.mrmlxp.in/post/money-laundering-arrest-and-bail-as-per-pmla-act-2002
Refrence:
Comments