The Financial Action Task Force (FATF) has released a detailed mutual assessment report on India. The report highlights India's anti-money laundering (AML) and counter-financing of terrorism (CFT) challenges and shortcomings.
It says that delays in prosecution, monitoring of NPOs and strict monitoring of PEPs need improvement in India. The FATF ordered India to submit a progress report on the implementation of the proposed reforms by October 2027.
Increased terror financing and continued activities of NE insurgency and left-wing extremist groups continue in India. The NPOs registered as charities are contributing to the financing of terrorism.
In India, cash-based transactions, drug trafficking and the jewellery market are major sources of money laundering. The FATF orders India to expedite pending money laundering trials. It also urges India to improve framework for immediate freezing of funds and assets.
The FATF expressed concern over several reports of ISIS' growing presence in India.
