India's attempts to tackle illicit financial transactions has received differing evaluations from the Financial Action Task Force (FATF), the international body that oversees AML and CFT (fighting the funding of terrorist activity). India received accolades from the FATF for its progress in countering laundering of funds, preventing the funding of terrorists, and fostering global financial collaboration. India's “high level of technical compliance” with the guidelines of the FATF has been acknowledged in the document, especially in regards to measures like asset seizures and freezes.
But the FATF has made clear how urgently additional oversight of non-governmental organisations (NGOs) is needed. It was suggested that India assume a risk-based approach in combating terrorism funding in the non-profit sector, due to the vulnerability of NGOs being exploited for criminal activities such as terrorism funding.
The FATF's conclusions highlight how crucial it is that India's AML/CFT regulations be transparent and just, especially when it comes to NGO supervision. The examination by the international monitoring agency is a component of a larger analysis of international attempts aimed at fighting financial crimes.
In current affairs, Venezuela was added to the “black list” of extremely susceptible countries, while Turkey was praised for its notable advancements in AML/CFT conformity, which led to its departure from the FATF's “grey list”, while Monaco was added.
India has made significant achievements against financial fraud, as evidenced by the FATF's favourable evaluation of the country. Nonetheless, India has to keep improving its plan of action, especially where NGOs are concerned along with other non-profits if the country is to preserve its reputation in the world and continue to guarantee the faith that lies in the nation’s financial institutions.
