In a concerted effort to combat money laundering and terrorist financing, India has taken significant strides over the past decade, as revealed during a recent visit to Singapore by an Indian delegation tasked with apprising the Financial Action Task Force (FATF) of the nation’s progress.
The FATF, an intergovernmental organization, is on the brink of releasing its report on the “mutual evaluation” of India’s measures to tackle money laundering and terror financing. To provide insights into India’s efforts, officials from various agencies including the Enforcement Directorate (ED), income-tax department, Central Bureau of Investigation (CBI), Directorate of Revenue Intelligence (DRI), and the finance and external affairs ministries convened in Singapore last month for face-to-face consultations.
The discussions, conducted under the cloak of anonymity, centered on the evolution of India’s countermeasures since its last review in 2010. Notable amendments to the Prevention of Money Laundering Act (PMLA) were highlighted, alongside the registration of over 5,000 money laundering cases in the past decade. Additionally, the arrest of 755 individuals and the attachment of properties valued at more than ₹1.21 lakh crore were cited as significant deterrents to organized crime, terrorism, and financial malfeasance.
A pivotal shift since the last evaluation has been the inclusion of a “politically exposed person” definition in the PMLA, a measure recommended by the FATF. Furthermore, India has expanded the purview of the PMLA to encompass non-government organizations and cryptocurrencies, thereby enhancing vigilance over illicit financial transactions involving virtual digital assets (VDAs).
The Reserve Bank of India (RBI) has ramped up oversight of fintech firms to ensure compliance with anti-money laundering laws, while simultaneously monitoring suspicious transactions. Moreover, the enactment of the Fugitive Economic Offenders Act in 2018 bolsters India’s legal arsenal against economic offenders evading justice.
According to a government official, India’s efforts have garnered international recognition, with several countries considering adopting its anti-money laundering/combating the financing of terrorism (AML/CFT) framework.
As India awaits the FATF’s report, its proactive approach to financial oversight serves as a beacon for global efforts to combat financial crimes. Through continued collaboration and vigilance, India remains steadfast in its commitment to safeguarding its financial integrity and thwarting illicit activities on both national and international fronts.
