The Financial Action Task Force (FATF), a leading global entity combating financial crimes, reported on Friday that India has shown significant adherence to its regulations. The watchdog acknowledged India’s robust efforts in tackling money laundering and terrorist financing but highlighted areas where improvements are still needed.
In its latest assessment, the FATF praised India for achieving a high level of technical compliance and effectiveness in addressing financial crimes. However, the organization noted that further action is required to enhance oversight and enforcement in the non-financial sectors of the country.
The FATF pointed out that India must address delays in finalizing prosecutions related to money laundering and terrorist financing. Strengthening these areas is crucial to ensuring comprehensive adherence to international standards.
Founded in 1989, the FATF is an intergovernmental body that sets global standards for combating money laundering and terrorist financing. India has been a member of this Paris-based organization since 2010.
The Indian government responded positively to the FATF’s Mutual Evaluation Report, which was adopted during the FATF plenary session in Singapore. The report placed India in the “regular follow-up” category, indicating the country’s financial system’s stability and integrity. Under this classification, India is required to report its progress to the FATF by 2027.
The government emphasized that strong compliance ratings can boost access to international financial markets and bolster investor confidence.
The FATF announced that it will release its final report on India’s compliance after completing a thorough quality and consistency review.