FATF Report Highlights Need for Major Improvements in India's AML/CFT Prosecution

The Financial Action Task Force (FATF) released its mutual evaluation report on India, highlighting the effectiveness of India's anti-money laundering and combating financing of terrorism (AML/CFT) system, but stressing the need for major improvements. India is placed in the 'regular follow up' category and will be re-evaluated in 2031.

The Financial Action Task Force (FATF) launched its comprehensive mutual evaluation report on India's anti-money laundering and terror financing systems on Thursday, identifying significant areas for improvement despite overall effectiveness.

The report, issued after the FATF adopted its assessment in the June plenary session, spans 368 pages and comes 13 years after the last review in 2010. Following an on-site visit by FATF experts last November, India has been categorized in the 'regular follow up' group, joining only four other G20 nations in this category.

The report criticized India's prosecution efforts in money laundering and terror financing cases, stressing the need for substantial improvements. It also urged better protections for the non-profit sector against terror abuse, highlighting threats from ISIL and Al Qaeda-linked groups in Jammu and Kashmir. India’s next evaluation is scheduled for 2031.