FATF On-Site Review in India: Evaluating Anti-Money Laundering and Counter-Terror Financing Framework

A team from the Financial Action Task Force (FATF), headquartered in Paris, has commenced on-site review meetings in India. The objective is to assess the country’s legal framework in place to combat money laundering and terrorist financing.

Team Composition and Meetings:

The FATF team, consisting of over a dozen members, including Secretariat officials and domain experts, arrived in Delhi in early November. The on-site visit, spanning approximately two weeks, involves meetings with senior government officials and private sector representatives. The team is expected to engage with entities such as the Department of Revenue, Enforcement Directorate, Narcotics Control Bureau, National Investigation Agency, and financial regulators.

Scope of Evaluation:

Mutual evaluations, a peer review process, are initiated by selecting legal, financial, and law enforcement experts for the assessment team. The assessed country provides relevant laws and regulations aimed at preventing financial system abuse. Assessors analyze this information, focusing on technical compliance with FATF standards. A draft report is prepared, identifying areas for the on-site visit. The subsequent mutual evaluation report covers both technical compliance and effectiveness, undergoing cycles of discussion and review.

Mumbai Visit and Civil Society Engagement:

The FATF team may extend its visit to Mumbai, a key financial hub in India. Additionally, meetings with civil society representatives are on the agenda. This inclusive approach reflects the comprehensive nature of the evaluation process.

Timeline and Plenary Discussion:

The assessment report, expected to be discussed during the June 2024 FATF plenary, undergoes rigorous cycles of discussions and reviews. The findings, including ratings, are deliberated upon, leading to the adoption of the final report for publication.

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