FATF is impressed with the prevention of money laundering in India

India has a very solid track record of preventing illegal money transactions in the country, seizing unlawful revenues, and preventing terrorist organizations from accessing financial resources. The FATF is so pleased with this that it has placed India in the group of four G-20 countries that will now be required to submit their report on those themes three years later, in October 2027.

The Finance Ministry described the FATF's commendation as an incentive to boost the Indian economy, while the Foreign Ministry described it as a success and a constructive step forward. FATF, or Financial Action Task Force, is an organization of 40 countries that monitors unlawful cash transactions on a global scale and reviews the steps taken to stop it.

According to this, FATF can also blacklist countries that do not take steps, due to which that country may face problems in getting external loans or doing business. Two years ago, FATF had threatened to put Pakistan in the banned list. To avoid this, the Pakistani government had to take several steps to stop the financial sources of terrorist organizations.

To avoid this ban, Pakistan also had to take action against the heads of many terrorist organizations under its purview, such as Jaish-e-Mohammed chief Masood Azhar and Lashkar-e-Taiba chief Hafiz Saeed.

Foreign Ministry spokesperson Randhir Jaiswal said, 'The FATF meeting is going on in Singapore but their comments on the actions taken in India to stop money laundering and funding of terrorist organizations are a success and we are considering it very positive.'

FATF has accepted the mutual evaluation report presented by the Government of India and has placed it in the category of countries with regular follow-up. There are only four G-20 countries in this category. This means that these four countries have to submit their report in three years, while other countries will have to report the steps taken against money laundering on an annual basis.

India has been continuously trying to stop illegal financial transactions in the country since 2014 and FATF has not seen any lack in its efforts. Meanwhile, Turkey has also welcomed its removal from the grey list and expressed hope for foreign investment.