India has been placed in the ‘regular follow up category’ in the “Mutual Evaluation Report of India” by Financial Action Task Force (FATF).
- The report was adopted in the FATF plenary held from the 26th to 28th June in Singapore. India joined the UK, France, Italy and other G20 group of countries in this category.
- FATF places member countries in any of the four categories namely, ‘regular follow-up’, ‘enhanced follow-up’, ‘grey list’ and ‘black list’, regular follow up being the top most category amongst 4.
- Only 5 countries in G20 including India have been placed in regular follow up after Mutual evaluation report.
- Amongst 177 countries covered by FATF and its Regional Bodies (FSRBs), only 24 countries includes India are in regular follow-up.
- Even developed countries like US, Australia, Canada, New Zealand, Singapore, etc are in enhanced follow-up ‘Enhanced follow-up’ is given to countries with significant deficiencies.
- The FATF has recognised the efforts made by India in mitigating the risks arising from money laundering and terrorist financing, in transitioning from a cash-based to a digital economy and in implementation of the JAM-Jan Dhan, Aadhaar, Mobile- trinity.
- FATF is an inter-governmental organisation established in 1989 as the international watchdog to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
- India became a member of FATF in 2010.
