The Financial Action Task Force (FATF) on Thursday released its mutual evaluation report on India, highlighting both the effectiveness and areas for improvement in the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. 

The report acknowledges that India has implemented a robust system that is effective in many respects; however, significant improvements are needed, particularly in the prosecution of money laundering and terror financing cases. The FATF emphasized the necessity of strengthening legal frameworks to address these issues effectively.

Meanwhile, the report says that India faces a diverse range of terror threats, particularly from groups linked to ISIL and al-Qaeda active in Jammu and Kashmir. The report also noted that a substantial portion of money laundering originates from illegal activities conducted within the country.

Additionally, the FATF pointed out the importance of protecting the non-profit sector from potential abuse for terror financing. The recommendations provided in the report aim to bolster India’s defenses against these threats and enhance its compliance with international standards.

(More details awaited)