Bharat has achieved a commendable level of technical compliance with Financial Action Task Force (FATF) requirements, and its efforts in Anti-Money Laundering (AML), Countering Terrorist Financing (CFT), and Countering the Proliferation of Weapons of Mass Destruction (CPF) have yielded positive outcomes, according to a statement by FATF.

Bharat has achieved remarkable success in the Mutual Evaluation conducted by the FATF during 2023-24. The Mutual Evaluation Report of Bharat, adopted at the FATF plenary in Singapore from June 26 to June 28, 2024, categorises Bharat under ‘regular follow-up,’ a distinction held by only four other G20 countries.

This milestone underscores Bharat’s significant strides in combating money laundering (ML) and terrorist financing (TF).

FATF has acknowledged Bharat’s efforts in several areas, including:

Addressing risks associated with money laundering (ML) and terrorist financing (TF), particularly concerning the laundering of proceeds from corruption, fraud, and organised crime

Implementing effective measures to shift from a cash-based to a digital economy, aimed at reducing ML/TF risks.

Introducing the JAM (Jan Dhan, Aadhaar, Mobile) Trinity and stringent regulations on cash transactions. These initiatives have significantly enhanced financial inclusion and digital transactions, making transactions more traceable and thereby mitigating ML/TF risks.

Bharat’s performance in the FATF Mutual Evaluation brings substantial benefits to its burgeoning economy, showcasing the stability and integrity of its financial system.

Positive ratings promise improved access to global financial markets and institutions, boosting investor confidence.

Additionally, it supports the global expansion of the Unified Payments Interface (UPI), India’s rapid payment system.

This recognition from FATF underscores Bharat’s decade-long commitment to implementing rigorous measures safeguarding its financial system from money laundering (ML) and terrorist financing (TF) threats.

It sets a benchmark for regional countries to adopt international standards effectively in combating terrorist financing.

Bharat’s outstanding rating enhances its capacity to lead global efforts against cross-border terror financing and money laundering.

Since 2014, Bharat has enacted legislative changes and strengthened enforcement to combat ML, TF, and illicit funds effectively. These efforts align with international standards and have proven successful, particularly in disrupting terror funding networks based on actionable intelligence. Operations have curbed the flow of terror funds, illicit money, and narcotics, even along coastlines.

According to experts, this recognition from FATF suggests that Bharat is making significant strides in strengthening its financial regulatory system to combat illicit financial activities and ensure compliance with international standards aimed at maintaining global financial stability and security.

Established in 1989, the Financial Action Task Force (FATF) is an intergovernmental organisation tasked with overseeing global efforts to combat money laundering, terrorist financing, and other threats to the integrity of the international financial system.

Bharat joined FATF as a member in 2010.

(This article has been published via a syndicated feed)