An evaluation, by the Financial Action Task Force (FATF), to analyze the effectiveness of India’s anti-money laundering and countering terrorist financing regime has been postponed again, for the second time, because of the pandemic.
Context
An evaluation, by the Financial Action Task Force (FATF), to analyze the effectiveness of India’s anti-money laundering and countering terrorist financing regime has been postponed again, for the second time, because of the pandemic.
About the Financial Action Task Force (FATF) Review
- The FATF conducts “peer reviews of each member to assess levels of implementation of the FATF recommendations.
- It provides an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system.”
- The last such review of India was held in June 2010 and it is usually taken up again after 10 years.
Initiatives by the Indian government against money laundering
- Guidelines and rules under the Prevention of Money Laundering Act (PMLA), 2001
- Know Your Customer (KYC) procedures
- Fugitive Economic Offenders Act in 2018
- Anti-black money Act, 2015
- Foreign Exchange Regulation Act (FERA), 1973
- Foreign Exchange Management Act (FEMA) in 1999
- Indian Customs Act, 1962
- Smugglers and Foreign Exchange Manipulators Forfeiture of Property Act, 1975
- Foreign Contribution (Regulation) Act, 1976
- The promulgation of the Prevention of Terrorism Act (POTA), 2002
- India is a signatory to the 1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (the Vienna Convention).
Financial Action Task Force (FATF)
- The Financial Action Task Force (FATF) is aninter-governmental financial watchdog.
- It develops and promotes policies to combat money laundering and financing of terrorism.
- It is consisting of 39 countries with major financial centers in Europe, North and South America, and Asia and two international organizations have proposed a set of 40 recommendations to combat money laundering.
- FATF has developed the FATF Recommendations, or FATF Standards, which ensure a coordinated global response to prevent organized crime, corruption, and terrorism.
- On June 25, 2010, India became the 34th country member of FATF.
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