September 19, 2024: The Financial Action Task Force (FATF) has released its mutual evaluation report on India’s efforts to combat terror financing and enhance its anti-money laundering (AML) framework. Following the evaluation, India has been placed in the “regular follow-up” category, reflecting both progress and the need for ongoing improvement.

The report highlights that India has achieved a high level of technical compliance with FATF Recommendations, noting significant steps taken to address illicit finance. The assessment indicates that India's AML and counter-terrorist financing (CFT) framework is delivering "good results," particularly in risk understanding, access to beneficial ownership information, and measures to deprive criminals of their assets.

However, the FATF stressed the critical need for India to continue refining its systems, especially as the economy and financial sector expand. The report emphasizes the importance of completing money laundering and terrorist financing trials in a timely manner, ensuring that offenders face appropriate penalties. It also advocates for a risk-based and educational approach towards non-profit organizations.

The findings from the FATF underscore both the achievements and challenges that lie ahead for India in strengthening its financial integrity and compliance with international standards.