{"id":29825,"date":"2024-09-21T18:48:58","date_gmt":"2024-09-21T13:18:58","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29825"},"modified":"2024-09-21T18:48:59","modified_gmt":"2024-09-21T13:18:59","slug":"fatf-lauds-indias-efforts-to-tackle-illicit-finance","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/21-09-2024\/fatf-lauds-indias-efforts-to-tackle-illicit-finance","title":{"rendered":"FATF Lauds India\u2019s Efforts to Tackle Illicit Finance"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Internal Security<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Financial Action Task Force (FATF)\u00a0 in its Mutual Evaluation Report for India \u2018<strong>Anti-Money laundering and Counter terrorist financing Measures<\/strong>\u2019 has lauded India\u2019s efforts to implement measures to tackle illicit finance including <strong>money laundering and terror funding.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Money Laundering?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Money laundering is the illegal process <\/strong>of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.\n<ul class=\"wp-block-list\">\n<li><strong>In terrorism financing<\/strong> the funds were used to procure arms and ammunition and for training the cadres of the violent extremist organization, among other purposes.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The money from the criminal activity is considered dirty, and the process \u201claunders\u201d it to make it look clean.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"e8e8e7\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-1024x576.webp\" alt=\"money-laundering-cycle\" class=\"not-transparent wp-image-29826\" style=\"--dominant-color: #e8e8e7; width:490px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-1024x576.webp 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-300x169.webp 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-768x432.webp 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-1536x864.webp 1536w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/money-laundering-cycle-jpg.webp 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Measures taken by India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Key Initiatives;\n<ul class=\"wp-block-list\">\n<li><strong>Jan Dhan-Aadhaar-Mobile (JAM): <\/strong>Praised for enhancing financial transparency.<\/li>\n\n\n\n<li><strong>GST E-Invoices and E-Bills: <\/strong>Promotes transparency in the supply chain.<\/li>\n\n\n\n<li><strong>Indian Cyber Crime Coordination Centre:<\/strong> Strengthens cybercrime enforcement.<\/li>\n\n\n\n<li><strong>Central KYC Records Registry (CKYCR): <\/strong>Repository for KYC data and customer records.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Task Forces and Committees:<\/strong> Formed to address corruption, black money, drug trafficking, and fake currency.<\/li>\n\n\n\n<li><strong>Collaboration<\/strong> between the Financial Intelligence Unit, law enforcement, and regulatory bodies.<\/li>\n\n\n\n<li><strong>Investigative Agencies:<\/strong> The National Investigation Agency (NIA) and Enforcement Directorate (ED) effectively conducted probes.<\/li>\n\n\n\n<li><strong>Task Force on Shell Companies:<\/strong> Over 3,82,000 entities were deregistered from 2017-2021.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Financial Action Task Force (FATF)<\/strong>\u00a0<br>&#8211; <strong>The Financial Action Task Force (FATF)<\/strong> is an intergovernmental organization which leads global action to tackle money laundering, terrorist and proliferation financing.<br>&#8211; <strong>History: <\/strong>FATF was established in <strong>1989 <\/strong>by the<strong> G7 <\/strong>to examine and develop measures to combat money laundering. It originally included the G7 countries, the European Commission and eight other countries.<strong> In 2001,<\/strong> the FATF expanded its mandate to also combat terrorist financing.\u00a0<br>&#8211; <strong>Members: <\/strong>FATF has<strong> 40 <\/strong>members including <strong>India. <\/strong>Recently<strong> Indonesia<\/strong> has become a member of FATF.<br>&#8211; FATF has the authority to issue warnings and sanctions against countries that fail to comply with its standards, such as suspension of membership and blacklisting.<br><strong>FATF \u2018Grey list\u2019 and \u2018Blacklist\u2019<\/strong><br>&#8211; <strong>Black List: <\/strong>Countries known as Non-Cooperative Countries or Territories (NCCTs) are put on the Blacklist. These countries support terror funding and money laundering activities.\u00a0<br>&#8211; <strong>Grey List: <\/strong>Countries that are considered a safe haven for supporting terror funding and money laundering are put in the FATF Grey list.\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/fatf-praises-indias-anti-money-laundering-terror-financing-system-calls-for-better-prosecution\/article68659985.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Action Task Force (FATF)\u00a0 in its Mutual Evaluation Report for India \u2018Anti-Money laundering and Counter terrorist financing Measures\u2019 has lauded India\u2019s efforts to implement measures to tackle illicit finance including money laundering and terror funding.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29825","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29825"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29825\/revisions"}],"predecessor-version":[{"id":29829,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29825\/revisions\/29829"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}