India gets top FATF ranking; rated equal to Italy, France, and UK

India on Thursday (September 19, 2024) got top FATF rating for its terror funding and money laundering efforts.

Financial Action Task Force (FATF) put India in the Regular Follow Up category which has been given to only 3 countries till now

FATF’s observation says that strictness should be increased on gems and jewellery.

However, FATF has given some observations on which India can work if it wants.

It says that criminals and their associates in gems and jewellery business should not be able to become part of this sector. India will have to work on this, it says further.

However, the government believes that hallmarking, cash limit of Rs 2 lakh and the registration of jewellers in GST reduces the risk.

FATF said that delay in court trail of money laundering and terror financing cases is a cause for concern.

FATF said that the system capacity of the court for money laundering cases should be increased and along with that the rate of conviction should be increased.

Only 2.86 lakh non-profit organisations are under the purview of income tax across the country and there are more than 30 lakh NPOs in the country.

FATF wants that NPO risk-based oversight should be increased and also they should also be educated about terror financing.

Asset freeze in terror financing should be done without any delay, it says.

Risk-based supervision of money transfer sector will have to be increased.

FATF wants that Political Exposure Person should be defined as PMLA in the country.